NY AG Investigating Online Discount Clubs

January 30, 2010

New York Attorney General Andrew Cuomo said today his office is investigating 22 online businesses that deceptively link consumers to fee-based membership programs that charge unauthorized fees for discount offers.

The investigation found online shoppers are unknowingly directed to a membership program seller’s website that is separate from the online retailers site. Information about joining the membership program and its consequences, including the fact that the consumer is agreeing to transfer their credit or debit card information, is buried in the fine print and cluttered text.

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