Cuomo Subpoenas Online Retailers for Discount Club Dealings

By Kiran Aditham 

Perhaps taking a cue from his predecessor Eliot Spitzer–in the professional sense that is–New York attorney general Andrew Cuomo is waging war on online “discount clubs” Affinion, Vertrue and Webloyalty for allegedly tricking customers into paying hidden fees.

In doing so, the AG has subpoenaed 20+ online retailers including Ticketmaster, Barnes & Noble, Pizza Hut and Orbitz to seek info about their practices of sharing consumers’ account information with the aforementioned clubs, which have been the subject of thousands of complaints, lawsuits in several states and a U.S. Senate investigation according to the AP.

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In a statement, Cuomo says, “Well-known companies are tricking customers into accepting offers from third-party vendors, which then siphon money from consumers’ accounts.” Of the major retailers involved in the brouhaha, B&N, Fandango and Priceline have all agreed to discontinue ties with the clubs and/or end such practices.

Via Gothamist

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