U.S Senate To Crack Down On Web Memberships Scams

The United States Senate committee of commerce expressed its outrage and disappointment towards reputed online commodities firms that have been accused of duping their customers by enrolling them in one or the other “special offers” that puts a monthly fee for services or membership clubs that these consumers have never even opted for.

The scam has been highlighted with numerous complaints from unsuspecting consumers who noticed a monthly charge on their accounts for services that they never opted for. The e-commerce websites from whom the users conducted transactions, offered the consumers some services that guaranteed cash backs and other rewards. This in turn led to a continuous monthly fees that the users were being forced to pay.

According to Sen. Jay Rockefeller (Chairman, Senate Commerce, Science and Transportation Committee),

“What’s happening is that many online merchants have decided to betray their customers’ trust. “For a few extra bucks in profit, these merchants pass their consumers’ personal billing information onto mysterious companies.”

The committee has reprimanded these e-commerce companies and have released an investigation report, according to which, internet companies like, Affinion, Vertrue and Webloyalty, have been able to generate over $1.4 billion in revenues using unethical business practices. These compnhies have about more than 30 million users who conduct daily transactions with the companies and have also partnered with more than 450 web sites that, use companies like Verture to extract money from consumers.

One of the victims of this e-commerce scam, Linda Lindquist, from Sussex, Wisconsin told the Senate committee that, she was charged about $320 in about 18 months for web memberships that she unknowingly opted for, when she clicked on a $10 coupon on the website that she visits frequently and buys movie tickets from.

Via Internet News & PC World.

ecommerce fraud U.S Senate To Crack Down On Web Memberships Scams

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