ALBANY — Attorney General Andrew Cuomo said his office is investigating 22 popular online retailers that he claims are deceptively linking consumers to fee-based membership programs when they make purchases.
Cuomo said his office has already reached an agreement with online movie ticket retailer Fandango to end the practice.
When people shop online, they are often given the option to receive a discount or cash-back incentive as they complete their purchase. If they seek the discount, they are “unknowingly directed to a membership program seller’s Web page that is separate from the online retailer’s site,” Cuomo said. That can lead to a $10 to $12 monthly fee.
Migdalia Concepcion, a Rochester resident, said she made frequent trips to Puerto Rico last year to care for her mother. When purchasing airline tickets online, she clicked on an ad that promised a discount on her next purchase.
“Three or four months later, I was charged $20 for each month and the (discount program) company would only refund me for the month” when she complained, she said.
Subpoenas were sent to merchants dealing with the three major companies — Webloyalty, Affinion and Vertrue — offering discount programs. They also received subpoenas.
The merchants being investigated: Barnes & Noble, Orbitz, Buy.com, Ticketmaster, MovieTickets.com, FTD.com, Shutterfly.com, 1-800Flowers.com, Avon, Budget, Staples, Priceline.com, GMAC Mortgage, Classmates.com, Travelocity, Vistaprint, Intelius, Hotwire.com, Expedia.com, Columbia House, Pizza Hut and Gamestop/EB Games.
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