Webloyalty
Encyclopedia
Webloyalty is an online marketing
company and the parent company of the UK company Shopper Discounts & Rewards
. Its founding partner and CEO is Richard Fernandes. The company describes its business as "[helping] e-commerce companies build business by generating additional revenue while providing their customers with valuable offers and services".
, have been investigated by the United States Senate Committee on Commerce, Science and Transportation
for what senators said are fraudulent business practices, whereby consumers are enrolled in a "membership rewards" or "loyalty" club, often without their knowledge, after having purchased something through a separate website. The committee investigation found that Webloyalty and other "loyalty club" companies "used aggressive sales tactics to enroll online consumers in services without their consent". After concluding its investigation, the chairman of the committee, Jay Rockefeller
, introduced a bill that seeks to force "loyalty clubs" to disclose more information to consumers. Webloyalty responded to the bill's introduction by saying it had refined its practices to help address senators' concerns and that it will fully comply with the bill once it is enacted.
, Buy.com
, Orbitz
, Priceline
, Classmates.com
, FTD
, and Shutterfly
, among others. When a consumer made a purchase on one of these sites, typically they would be asked if they would like to sign up for one of several varieties of "membership rewards" or "coupon" programs, in exchange for a monthly fee (often explained in fine print). If the consumer answered yes, then they would be enrolled in the reward program and their credit card data automatically transferred from the retailer to Webloyalty without the consumer actually entering it again (a practice known as "data pass"). Because the consumer wasn't prompted to enter payment data the second time, many were unaware that just clicking yes enrolled them in a monthly paid program, often discovering it months later while looking over a credit card statement. After the Senate began investigating, some retailers (including Continental Airlines and others) dropped their association with loyalty companies such as Webloyalty.
Marketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
company and the parent company of the UK company Shopper Discounts & Rewards
Shopper Discounts & Rewards
Shopper Discounts & Rewards is a UK company based in Kent, England. Its parent company Webloyalty is based in the United States.Shopper Discounts & Rewards describes itself as "a premier online savings service operated by webloyalty"...
. Its founding partner and CEO is Richard Fernandes. The company describes its business as "[helping] e-commerce companies build business by generating additional revenue while providing their customers with valuable offers and services".
Senate investigation
The company, along with Affinion Group and VertrueVertrue
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...
, have been investigated by the United States Senate Committee on Commerce, Science and Transportation
United States Senate Committee on Commerce, Science and Transportation
The United States Senate Committee on Commerce, Science, and Transportation is a standing committee of the United States Senate in charge of all senate matters related to the following subjects:* Coast Guard* Coastal zone management* Communications...
for what senators said are fraudulent business practices, whereby consumers are enrolled in a "membership rewards" or "loyalty" club, often without their knowledge, after having purchased something through a separate website. The committee investigation found that Webloyalty and other "loyalty club" companies "used aggressive sales tactics to enroll online consumers in services without their consent". After concluding its investigation, the chairman of the committee, Jay Rockefeller
Jay Rockefeller
John Davison "Jay" Rockefeller IV is the senior United States Senator from West Virginia. He was first elected to the Senate in 1984, while in office as Governor of West Virginia, a position he held from 1977 to 1985...
, introduced a bill that seeks to force "loyalty clubs" to disclose more information to consumers. Webloyalty responded to the bill's introduction by saying it had refined its practices to help address senators' concerns and that it will fully comply with the bill once it is enacted.
Business practices
Webloyalty and other loyalty companies had contracted with many popular retail websites, including Continental AirlinesContinental Airlines
Continental Airlines was a major American airline now merged with United Airlines. On May 3, 2010, Continental Airlines, Inc. and UAL, Inc. announced a merger via a stock swap, and on October 1, 2010, the merger closed and UAL changed its name to United Continental Holdings, Inc...
, Buy.com
Buy.com
Buy.com, Incorporated is an online retailer based in Aliso Viejo, California.Buy.com began by selling computers and electronics in 1997 and has since expanded into many other categories...
, Orbitz
Orbitz
Orbitz Worldwide, Inc. is an Internet travel company headquartered in the Citigroup Center in Near West Side, Chicago, Illinois. Through its primary web site Orbitz.com, Orbitz Worldwide enables travelers to research, plan and book a broad range of travel products, facilitating 1.5 million flight...
, Priceline
Priceline
Priceline may refer to:*Priceline.com, a commercial website which helps users obtain discount rates for travel-related items such as airline tickets and hotel stays*Priceline , a chain of health and beauty retail stores in Australia...
, Classmates.com
Classmates.com
Classmates.com is a social network service created in 1995 by Randy Conrads who founded Classmates Online, Inc.The social media website was originally designed to assist members in finding friends and acquaintances from kindergarten, primary school, high school, college, work and the United States...
, FTD
FTD
FTD may refer to:* Field test display, a software application on mobile phones* Financial Times Deutschland, a German language financial newspaper based in Hamburg, Germany, published by Gruner + Jahr...
, and Shutterfly
Shutterfly
Shutterfly is an Internet-based social expression and personal publishing service. Shutterfly's flagship product is its photo book line. It is based in Redwood City, California.-Features:...
, among others. When a consumer made a purchase on one of these sites, typically they would be asked if they would like to sign up for one of several varieties of "membership rewards" or "coupon" programs, in exchange for a monthly fee (often explained in fine print). If the consumer answered yes, then they would be enrolled in the reward program and their credit card data automatically transferred from the retailer to Webloyalty without the consumer actually entering it again (a practice known as "data pass"). Because the consumer wasn't prompted to enter payment data the second time, many were unaware that just clicking yes enrolled them in a monthly paid program, often discovering it months later while looking over a credit card statement. After the Senate began investigating, some retailers (including Continental Airlines and others) dropped their association with loyalty companies such as Webloyalty.