Watch Out for These Consumer-Discount Clubs
A six-month investigation by the Senate Commerce Committee has found that millions have been enrolled unknowingly into these clubs and charged monthly for their membership.
In March, my husband booked transportation from an airport through SuperShuttle.com. On the reservation page, he clicked on an offer to receive $25 off his fare. Sounds like a good deal, right? Well, a few days ago, he got an e-mail that said Webloyalty had been charging him $12 a month since March.
The e-mail arrived in his inbox just three days before the Senate Commerce Committee held a hearing November 18 about tactics some companies are using to trick online shoppers into joining "consumer-discount clubs," which charge monthly membership fees but usually don't deliver the rewards they promise. Webloyalty was one of three companies the committee had been investigating the past six months (Affinion and Vertrue were the other two).
The committee found that 30 million people had been enrolled into these clubs -- several million, including my husband, didn't know they had been enrolled. According to the committee's report, more than 450 e-commerce sites, including Priceline, Buy.com and Expedia, have partnered with Webloyalty, Affinion and Vertrue (The Consumerist lists 88 of the big sites). "The clubs partner with the Web site the consumer originally visited, which passes along the credit card number -- and splits the profit from the monthly fee," says committee member Sen. Bill Nelson in a press release.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The e-mail my husband received gave him the opportunity to apply for a refund, which he did but hasn't seen the charges removed yet. If you became a "member" of one of these clubs unknowingly and your credit-card account has been charged monthly, contact the companies directly or call your card issuer to dispute the charges. If that doesn't work, you can file a complaint with your attorney general (see a list), the Better Business Bureau and the Federal Trade Commission.
When shopping online, watch out for savings offers that pop up and never agree to any before reading the fine print.
To continue reading this article
please register for free
This is different from signing in to your print subscription
Why am I seeing this? Find out more here
Award-winning journalist, speaker, family finance expert, and author of Mom and Dad, We Need to Talk.
Cameron Huddleston wrote the daily "Kip Tips" column for Kiplinger.com. She joined Kiplinger in 2001 after graduating from American University with an MA in economic journalism.
-
Stock Market Today: Stocks Soar on Apple Buyback News, Jobs Data
The main indexes rallied hard to end the week thanks to Apple's $110 billion stock repurchase plan and a big April payrolls miss.
By Karee Venema Published
-
Three Hidden Costs of Health Savings Accounts (HSAs)
Health Savings HSAs offer valuable tax benefits, but hidden costs can erode those advantages.
By Kelley R. Taylor Last updated
-
5 Ways to Save Money on Vacation Rental Properties
Travel Use these strategies to pay less for an apartment, condo or house when you travel.
By Cameron Huddleston Last updated
-
10 Annoying Hotel Fees and How to Avoid Them
Travel Here's how to avoid extra charges and make sure you don't get stuck paying for amenities that you don't use.
By Cameron Huddleston Last updated
-
How to Appeal an Unexpected Medical Bill
health insurance You may receive a bill because your insurance company denied a claim—but that doesn’t mean you have to pay it.
By Rivan V. Stinson Published
-
Amazon Prime Fees Are Rising. Here’s How to Cancel Your Amazon Prime Membership
Amazon Prime Amazon Prime will soon cost $139 a year, $180 for those who pay monthly. If you’re a subscriber, maybe it’s time to rethink your relationship. Here’s a step-by-step guide to canceling Prime.
By Bob Niedt Published
-
How to Haggle for Almost Anything
Smart Buying Learning how to haggle is an invaluable skill. These strategies will help you negotiate a better price for just about any product or service.
By Katherine Reynolds Lewis Last updated
-
Disability Insurance Can Provide COVID Coverage
Coronavirus and Your Money If you are concerned about long-term complications from COVID-19, consider disability insurance coverage.
By Rivan V. Stinson Published
-
21 Things You Can't Return to Amazon
Before tossing these items into your virtual shopping cart, be sure to read Amazon's return policy first.
By Bob Niedt Last updated
-
How to Avoid a Charity Scam
personal finance Scammers never quit, even when you're trying to be altruistic. But you can avoid getting duped if you do your homework.
By Rivan V. Stinson Published