(COLUMBUS, Ohio)—Ohio Attorney General Mike DeWine, along with 46 other states and the District of Columbia, announced today that Connecticut-based Affinion and its subsidiaries, Trilegiant and Webloyalty, will pay more than $30 million to settle allegations that they misled consumers into enrolling in discount clubs and memberships.
More than $19 million in consumer refunds will be available as a result of the settlement.
“Consumers have a right to know when they will be charged and by whom,” Attorney General DeWine said. “Some consumers didn’t even realize they had entered into an agreement with this company. This settlement will help end certain misleading business practices and ensure that consumers receive clearer information.”
Affinion runs discount clubs and membership programs offering credit monitoring, roadside assistance, discount travel, and other services. It uses a practice called “negative option marketing,” where it charges consumers a monthly fee until the consumer affirmatively cancels. It also markets programs through “marketing partners” — well-known banks and retailers that present the programs to consumers often immediately after the consumer has made a transaction with that bank or retailer.
Consumers complained that Affinion charged them without authorization or that they had trouble canceling or getting a refund. Other consumers were confused about who Affinion was because the offers appeared to come from Affinion’s marketing partners rather than Affinion itself.
The states found that Affinion did not clearly and conspicuously disclose its identity or the cost and nature of its charges to consumers. Under the settlement, Affinion agrees to provide consumers with clearer information about its memberships and to improve its cancellation policies.
The settlement also prohibits Affinion from using the following business practices, which the states found especially troubling:
- Live check solicitations: Consumers received an offer in the mail that appeared to be a check. When consumers endorsed and deposited the check, however, they unknowingly gave Affinion permission to enroll them in membership programs and to bill them each month indefinitely.
- Online data pass offers: Consumers received an Affinion offer immediately after an online purchase from a retailer. Affinion then was able to enroll and bill consumers without acquiring any of their account information because the marketing partner would pass that information to Affinion.
Ohio’s share of the settlement is $450,000, which will be paid to the Consumer Protection Enforcement Fund. Additionally, Affinion is establishing a fund of more than $19 million to provide refunds to some consumers who received unauthorized charges for Affinion’s programs.
Ohio consumers should check their credit card and bank account statements for the names of Affinion’s membership programs. Those who believe they were improperly charged by Affinion, Trilegiant, or Webloyalty should file complaints with the Ohio Attorney General’s Office at www.OhioAttorneyGeneral.gov or by calling 800-282-0515.
The states included in the settlement are Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming.
A complaint has been filed with the Franklin County Common Pleas Court and an agreed entry and final judgment order will be presented to the court for approval.
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Documents
List of Affinion Membership Programs
Media Contacts
Dan Tierney: 614-466-3840
Kate Hanson: 614-466-3840