UPDATE: Senate Panel Queries 16 Cos On Ties To E-Marketing Firms
06 Novembre 2009 - 6:19PM
Dow Jones News
The Senate Commerce Committee is querying 16 companies that
conduct sales over the Internet about their business relationships
with three marketing companies that are under investigation by the
panel.
In letters sent Thursday to the likes of 1-800-FLOWERS.com Inc.
(FLWS), Orbitz Worldwide Inc. (OWW) and priceline.com Inc. (PCLN),
committee Chairman John D. Rockefeller (D., W.Va.) asked whether
the companies use a "data pass" process to transfer their
customers' billing information to one of the three marketing
companies.
For the better part of the year, the committee has been
investigating marketing practices at Vertrue Inc. (VTRU),
Webloyalty Inc. and Affinion Group Inc.
The most recent set of letters went to companies that allow at
least one of those firms to advertise on their Web sites. The 16
companies receiving the letters represent a sampling of Web
companies that could be sharing customers' billing information with
third-party marketing firms, according to committee aides.
Rockefeller wants to know how online consumers find themselves
charged on an ongoing basis for unwanted club memberships offered
by the marketing companies or their subsidiaries.
Customers on e-commerce Web sites sometimes incur charges after
a pop-up window appears offering cash-back rewards if they sign up
for an online membership service.
Thousands of consumers have complained that they didn't
authorize monthly charges to their credit cards for the
memberships, according to the committee.
The three marketing firms under investigation all say they adopt
high marketing standards and are upfront with customers about
discount club membership terms.
Rockefeller sent letters to the following companies:
1-800-FLOWERS.com, AirTran Holdings Inc. (AAI), Classmates Online
Inc., Continental Airlines Inc. (CAL), FTD, Fandango Inc., Hotwire
Inc., Intelius Inc., MovieTickets.com Inc., Orbitz, Pizza Hut,
priceline.com, Redcats USA, Shutterfly Inc. (SFLY), US Airways
Group Inc. (LCC) and Vistaprint USA Inc.
FTD and Classmates are both units of United Online Inc.
(UNTD).
The letters ask the companies how many of their customers have
enrolled in memberships through Affinion, Vertrue or Webloyalty and
whether they have received complaints from customers about the club
memberships.
Rockefeller also wants to know whether Affinion, Vertrue or
Webloyalty supply the e-commerce Web companies with data on
customers who sign up or cancel club memberships.
Rockefeller has asked the companies to respond by Nov. 14.
In a statement, Orbitz said it has been "proactively and
voluntarily working with Sen. Rockefeller on improving the consumer
experience for travelers wanting to participate in these discount
programs."
Orbitz recently added a new layer of protection for customers
who sign up for Webloyalty's discount programs, requiring them to
supply the security code from their credit cards. Customers also
must supply an e-mail address, and Orbitz asks Webloyalty to send
follow-up confirmation e-mails when customers sign up.
A priceline spokesman said his company has received the letter
and is reviewing it.
Officials from the other companies weren't immediately available
for comment.
-By Fawn Johnson, Dow Jones Newswires; 202-862-9263;
fawn.johnson@dowjones.com
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