Trilegiant, a travel marketing business, has paid the state of Florida $400,000 in restitution and has agreed to provide compensation to consumers wronged by the company's tactics in marketing various club memberships.
The company marketed the memberships to Florida consumers in a variety of manners, none of which was ever clearly disclosed. Some 40 such clubs were marketed, including Buyer's Advantage, Traveler's Advantage and Complete Home.
Consumers were signed up for trial memberships in the clubs, billed for membership fees, and continually re-enrolled. Membership fees ranged anywhere from $59.95 annually to $89.95 annually.
Methods of enrollment included complimentary checks for nominal amounts, Internet surveys, and telephone solicitations that would enroll consumers by obtaining personal information without disclosing the purpose of the call. In each case, consumers would engage in otherwise normal behavior, not realizing that their actions were unwittingly signing them up for club membership.
Once the victims were enrolled in the club, membership fees were charged to their credit cards without their knowledge one to three months later after a "free" trial period. Problems were also reported with efforts to cancel memberships and obtain refunds.
"While the charges might have been fairly small each month, the principle of the matter is still wrong," said Attorney General Charlie Crist t. "Every little bit adds up and the consumers of Florida should not have to foot the bill."
Under the settlement with the state, Trilegiant and its subsidiaries will provide restitution to consumers who have already filed complaints or who do so within the next six months, if the consumers did not take advantage of the benefits provided by club membership.
The company will also take steps to make sure information regarding memberships is conspicuously presented to consumers. Trilegiant will also be required to provide an independent liaison to handle refunds and complaints. Furthermore, Trilegiant and its subsidiaries must clearly separate survey information from sign-up information on marketing surveys.
Among the club names used by Trilegiant are "Auto vantage," "Buyers Advantage," "Clever Clubhouse," "Complete Home," "Digital Protection Plus," "Great Fun," "Great Options," "Health Saver," "Hot-Line," "Identity Secure," "Just for Me," "National Card Registry," "Netmarket.com," "Pet Privileges," "Privacy Guard," "Shoppers Advantage," "Small Business Central," "Travel ER," and "Travelers Advantage."
