Online Promotions: How tricking people with certain landing pages can get you into trouble!

By: Bob Ross Would you consider this online program to be misleading? First Image- Offer <img height="269" width="640" alt="" src="/uploads/Image/Tricking%20Campaign_0002.jpg" /> Second Image- Landing page telling them that in order to get the $10 cash back they have to sign-up for another service. <img alt="" src="/uploads/Image/Tricking%20Campaign_0003.jpg" /> Who’s used this type of program? There are many companies that have paired with Webloyalty.com the past few years, such as:  Pizza Hut, LillianVernon.com, Barnes & Noble, American Greetings.com and TigerDirect.com - just to name a few. Is it deceptive marketing? According to the U.S. Senate Commerce Committee, the way the promotion has been used over the years by Webloyalty is deceptive. The company has been the subject of a number of lawsuits in Massachusetts and elsewhere.   But in Massachusetts, there has just recently been a settlement proposal in the U.S. District Court in which Webloyalty will pay $10 million to refund memberships fees collected from consumers. Consumers complain that, in many instances, they didn’t know their information was being transferred between companies and thought they were only taking a look at a cash-back offer. Though Webloyalty has maintained it has not violated any deceptive advertising practices, a settlement of five Massachusetts lawsuits combined into a single action is now pending, according to Marianne Sorensen, an attorney with Jones Waldo in St. George, Utah. Hooking up with a third party to share customers is not illegal, according to Mikhia Hawkins of Venable LLP in Washington, D.C. “Just the actual practice itself is not inherently unlawful. That arrangement can be legal if it is done right.” 4 ways to avoid getting into trouble Sorensen said that in order to avoid getting into trouble, marketers must provide the customer full disclosure of every significant detail.  In the situation with Webloyalty.com, thousands of consumers said that wasn’t the case. In fact, Sen. Jay Rockerfeller, R-W.Va., chairman of the Senate Commerce Committee, said the Webloyalty.com situation led to “mystery charges” on the credit cards of web surfers. Sorensen, Hawkins and John Pickerill, with Fredrikson and Byron in Minneapolis, offer this advice to marketers: •  Provide full disclosure of every detail that could possibly be of importance, Sorensen said. •  Make it clear that the customer is leaving and going to a third party site that the client has no control over, Pickerill said. •  Go overboard with any disclaimers or disclosures, Sorensen said. Assume that a business competitor or consumer is out there bent on getting you in trouble. •  Get a good sense of how the third party operates and have the third party sign an agreement requiring the third party to follow all applicable laws, Hawkins said. 3 rules to follow 1.  Clearly and conspicuously disclose all material terms before payment by the consumer, including the total cost, any transfer of the customer’s billing information and information on how to cancel any purchase. 2.  Get affirmative consent to the offer by clicking an ‘I agree’ box. Pre-checked boxes are not allowed. 3.  Make sure the cancellation process works and is not changed.

2009-06-26T14:32:48Z

2009-06-26 172 true False Adveritising, False marketing, deceptive marketing, deceptive online programs By: Bob Ross Would you consider this online program to be misleading? You will have to log-in to view the images. Who’s used this type of program? There are many companies that have paired with Webloyalty.com the past few years, such as:  Pizza Hut, LillianVernon.com, Barnes & Noble, American Greetings.com and TigerDirect.com - just to name a few. Is it deceptive marketing?   Online Promotions: How tricking people with certain landing pages can get you into trouble!

2010-03-11T06:19:24Z

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