Tuesday, June 2, 2009

Chairman Rockefeller Launches Investigation Into Deceptive Online “Mystery Charges"
"John D. (Jay) Rockefeller IV, Chairman of the U.S. Senate Committee on Commerce, Science, and Transportation today announced a Senate Commerce Committee investigation into certain e-commerce marketing practices that generate thousands of mysterious monthly charges to consumer credit cards.

KEY BACKGROUND INFORMATION

• The source of these puzzling monthly fees appears to be from a group of marketing companies that acquire consumers’ billing information through agreements with popular online retail sites.

• On many well-known websites, including Fandango.com and Orbitz.com, after consumers make a purchase, a hyperlink or “pop up” window appears and offers consumers a cash back reward if they sign up for a company’s online membership service. If consumers accept the offer by providing an e-mail address and clicking a “yes” button, their credit card or debit card account information is automatically forwarded to the company and they are automatically enrolled in the service. And unless the consumer cancels this online membership service, their credit card or debit card is indefinitely charged $9-$12 on a monthly basis..."

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