Vertrue
Encyclopedia
Vertrue Incorporated, headquartered in Norwalk, CT, is a consumer services marketing
company. The company again received an "F" from the Better Business Bureau
for making unauthorized charges to its customers' credit cards. In 2010, Vertrue and two of its subsidiaries were found guilty of defrauding nearly 500,000 of their customers in Iowa.
, in November 2006 the President and Chief Executive Officer of Vertrue is listed as Gary Johnson.
Vertrue have a European division called Adaptive Affinity, based in Edgware
UK, and led by Andrew Millet. They have a number of brands in Europe including VP Rewards, Premier Club and highstreetmax.com. All of the brands specialise in positive option selling, where customers of other companies, for example Amazon.co.uk or Lastminute.com
find that by not un-clicking a box during a transaction they will be signed up and billed for the memberships which is stated in the terms and conditions. The branch agreed to change its sign-up methods in June 2009. Adaptive Affinity Ltd began a process of attempting to force the removal of negative comments from their customers, by posting legal letters to a number of websites in September 2010.
lawsuit at the Middle District Court of Tennessee
in which Margaret Wike claimed that Vertrue violated federal law by enrolling her in a discount club and charging a monthly fee to her debit card.
The district court granted summary judgment
for Vertrue, concluding that EFTA
’s one-year limitations period barred Wike’s claim. Wike sought leave to add RICO
claims to her complaint, alleging that Vertrue had ensnared Wike and “hundreds of thousands” of other consumers in a deceptive marketing scheme. The district court denied Wike’s request, concluding that the proposed amendment would be futile because Wike could not show she was injured “by reason of” Vertrue’s alleged racketeering activity, 18 U.S.C. § 1964. Wike appealed both rulings and prevailed on the summary judgment ruling but the appeals court decided not to rule on the failure to provide leave to amend complaint to include racketeering charges.
On behalf of Iowa
, state attorney general
Tom Miller
sued the company in May 2006, saying it was signing up customers in a way that violated Iowa's Buying Club Memberships Law.
Vertrue has sued the Wikimedia Foundation
in 2008 in Connecticut
over the contents of the article on the company in Wikipedia.
Services marketing
Services marketing is a sub field of marketing, which can be split into the two main areas of goods marketing and services marketing...
company. The company again received an "F" from the Better Business Bureau
Better Business Bureau
The Better Business Bureau , founded in 1912, is a corporation consisting of several private business franchises of local BBB organizations based in the United States and Canada, which work through their parent corporation, the Council of Better Business Bureaus .The Better Business Bureau, through...
for making unauthorized charges to its customers' credit cards. In 2010, Vertrue and two of its subsidiaries were found guilty of defrauding nearly 500,000 of their customers in Iowa.
Organization
In the annual report, submitted to the United States Securities and Exchange CommissionUnited States Securities and Exchange Commission
The U.S. Securities and Exchange Commission is a federal agency which holds primary responsibility for enforcing the federal securities laws and regulating the securities industry, the nation's stock and options exchanges, and other electronic securities markets in the United States...
, in November 2006 the President and Chief Executive Officer of Vertrue is listed as Gary Johnson.
Vertrue have a European division called Adaptive Affinity, based in Edgware
Edgware
Edgware is an area in London, situated north-northwest of Charing Cross. It forms part of both the London Borough of Barnet and the London Borough of Harrow. The area is identified in the London Plan as one of 35 major centres in Greater London....
UK, and led by Andrew Millet. They have a number of brands in Europe including VP Rewards, Premier Club and highstreetmax.com. All of the brands specialise in positive option selling, where customers of other companies, for example Amazon.co.uk or Lastminute.com
Lastminute.com
lastminute.com is an online travel and leisure retailer. The company was founded by Martha Lane Fox and Brent Hoberman in 1998 and became an icon of the UK internet boom of the late 1990s, floating at the peak of the dot com bubble and trading on the London Stock Exchange under the symbol...
find that by not un-clicking a box during a transaction they will be signed up and billed for the memberships which is stated in the terms and conditions. The branch agreed to change its sign-up methods in June 2009. Adaptive Affinity Ltd began a process of attempting to force the removal of negative comments from their customers, by posting legal letters to a number of websites in September 2010.
Lawsuits
Vertrue faced a class actionClass action
In law, a class action, a class suit, or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued...
lawsuit at the Middle District Court of Tennessee
United States District Court for the Middle District of Tennessee
The United States District Court for the Middle District of Tennessee is the federal trial court for most of Middle Tennessee. Based in Nashville, it was created in 1839 when Congress added a third district to the state...
in which Margaret Wike claimed that Vertrue violated federal law by enrolling her in a discount club and charging a monthly fee to her debit card.
The district court granted summary judgment
Summary judgment
In law, a summary judgment is a determination made by a court without a full trial. Such a judgment may be issued as to the merits of an entire case, or of specific issues in that case....
for Vertrue, concluding that EFTA
Electronic Funds Transfer Act
The Electronic Fund Transfer Act was passed by the U.S. Congress in 1978 and signed by President Jimmy Carter, to establish the rights and liabilities of consumers as well as the responsibilities of all participants in electronic funds transfer activities....
’s one-year limitations period barred Wike’s claim. Wike sought leave to add RICO
Racketeer Influenced and Corrupt Organizations Act
The Racketeer Influenced and Corrupt Organizations Act, commonly referred to as the RICO Act or simply RICO, is a United States federal law that provides for extended criminal penalties and a civil cause of action for acts performed as part of an ongoing criminal organization...
claims to her complaint, alleging that Vertrue had ensnared Wike and “hundreds of thousands” of other consumers in a deceptive marketing scheme. The district court denied Wike’s request, concluding that the proposed amendment would be futile because Wike could not show she was injured “by reason of” Vertrue’s alleged racketeering activity, 18 U.S.C. § 1964. Wike appealed both rulings and prevailed on the summary judgment ruling but the appeals court decided not to rule on the failure to provide leave to amend complaint to include racketeering charges.
On behalf of Iowa
Iowa
Iowa is a state located in the Midwestern United States, an area often referred to as the "American Heartland". It derives its name from the Ioway people, one of the many American Indian tribes that occupied the state at the time of European exploration. Iowa was a part of the French colony of New...
, state attorney general
State Attorney General
The state attorney general in each of the 50 U.S. states and territories is the chief legal advisor to the state government and the state's chief law enforcement officer. In some states, the attorney general serves as the head of a state department of justice, with responsibilities similar to those...
Tom Miller
Thomas John Miller
Thomas John Miller is an attorney and the current Attorney General of the state of Iowa. He first served as the state's Attorney General from 1979 until 1991, when he ran for governor; however, he failed to obtain the Democratic Party's nomination.Miller was again elected Attorney General in...
sued the company in May 2006, saying it was signing up customers in a way that violated Iowa's Buying Club Memberships Law.
Vertrue has sued the Wikimedia Foundation
Wikimedia Foundation
Wikimedia Foundation, Inc. is an American non-profit charitable organization headquartered in San Francisco, California, United States, and organized under the laws of the state of Florida, where it was initially based...
in 2008 in Connecticut
Connecticut
Connecticut is a state in the New England region of the northeastern United States. It is bordered by Rhode Island to the east, Massachusetts to the north, and the state of New York to the west and the south .Connecticut is named for the Connecticut River, the major U.S. river that approximately...
over the contents of the article on the company in Wikipedia.