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Connecticut Sues Trilegiant

July 12, 2005
Connecticut is suing Trilegiant for for allegedly deceiving consumers into enrolling in its many travel and affinity clubs.

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"Trilegiant is a club that deserves no members – tricking consumers with so called reward checks and then hitting them with automatic renewal fees," said Blumenthal said. Attorney General Richard Blumenthal as he and Department of Consumer Protection (DCP) Commissioner Edwin R. Rodriguez today announced the filing of the suit.

Trilegiant of Norwalk operates various national discount clubs, soliciting consumers to subscribe as paid members. It markets a variety of programs such as discount travel, health, dental, entertainment and other consumer services. The clubs include AutoVantage, Buyers Advantage, Complete home, Health Saver, Travelers Advantage, Privacy Advantage and Shoppers Advantage.

Trilegiant allegedly enrolls consumers through forms disguised as complimentary checks for nominal amounts, Internet surveys and through telemarketing. If consumers fail to cancel the trial membership, their credit cards are charged annual membership fees ranging from $59.95 to $89.95.

Blumenthal's office has received hundreds of complaints from consumers who say they were enrolled against their will, and then unable to cancel the membership.

"Trilegiant is a club that deserves no members – tricking consumers with so called reward checks and then hitting them with automatic renewal fees," Blumenthal said. "Trilegiant uses 'Advantage' to name its clubs – but the only real advantage goes to Trilegiant. My office has intervened on behalf of hundreds of consumers, but Trilegiant persisted its predatory enrollment practices over and over again. We're investigating involvement of other companies – credit card issuers and national banks – that may be knowingly aiding this scheme."

"Many Connecticut consumers at one time or another have received mail with these complimentary checks that, when cashed, force the consumer into an unwanted agreement with costly consequences," Rodriguez said. "These deceptive business practices will not be tolerated in Connecticut and this lawsuit should send a clear message to the marketplace that our state will prosecute companies that try to rip off consumers."

The state is also investigating apparent marketing agreements between Trilegiant and several other businesses, particularly national banks that issue credit cards. The membership clubs are often marketed to credit card holders, often through the use of 'rewards' checks that appear to be rebates or rewards from the bank to their customers.

In reality, cashing the check enrolls the consumer in a 'trial offer' buying club membership. The consumer is then automatically billed for the annual membership if they fail to cancel during the trial offer period. Consumers have also reported difficulty canceling the membership after they discover the charges on their credit cards.

Blumenthal and Rodriguez said the enrollment practices and efforts to prevent consumers from canceling memberships violates the Connecticut Unfair Trade Practice advertising regulations concerning disclosure of the terms adjacent to an offer.

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