Webloyalty.com Inc. agreed to pay $5.5 million to the state of New York over charges it tricked consumers into signing up for discount purchase clubs that contained hidden fees.
In its settlement with New York Attorney General Andrew Cuomo, Norwalk-based Webloyalty.com also agreed to pay an unspecified amount to reimburse consumers.
Five more companies will pay a combined $3.3 million for steering offers to consumers using Webloyalty.com”™s platform: Ticketmaster L.L.C.; Pizza Hut Inc.; Orbitz Worldwide L.L.C.; Shutterfly Inc.; and MovieTickets Inc.
“In this all-too-common Internet scheme, consumers were tricked into paying for monthly services for a discount club while shopping online at trusted retailers,” Cuomo said, in a prepared statement. “I urge New Yorkers who make purchases online to be wary of cash-back or discount offers, which often leave consumers with more than they bargained for.”
In a statement released through a New York City-based public relations company, Webloyalty indicated that it discontinued last January its “data pass” program that recorded credit card information from various partner companies. Since that time, enrollment in the company”™s program occurs only if the consumer provides their entire credit or debit card number directly to Webloyalty.
The company added that its offer page displays the monthly membership cost at least four times, two of which are bolded or otherwise highlighted. Consumers are advised multiple times that receipt of any incentive offer is contingent upon enrollment in the membership program, Webloyalty added, and that they may incur a monthly fee following the applicable trial period. And the company stated it has a no-hassle cancellation policy.
Estonia won”™t file charges against Sikorsky
The nation of Estonia reportedly will not file criminal charges against Sikorsky Aircraft Corp. or its executives, following the August 2005 Baltic Sea crash of a Sikorsky-built helicopter that killed 14 people.
According to the Helsingin Sanomat, a five-year statute of limitations expired this past August, with Estonia officials blaming the U.S. government for not responding to requests for legal cooperation.
Last year, Sikorsky reportedly settled lawsuits brought by Copterline Oy, the Finnish company that operated the shuttle service. Copterline filed for bankruptcy last February and has ceased operations.
