WASHINGTON — A Senate committee Tuesday condemned three online companies, saying they are tricking consumers into signing up for subscription services they don't want.
Internet companies Affinion, Vertrue and Webloyalty are using aggressive sales tactics to scam millions of customers, the Senate Commerce Committee said.
According to a committee report, the three companies enter into agreements with more familiar Internet shopping sites that sell movie tickets, flowers and other items.
Just before a customer completes the sales confirmation process the customer gets an offer that often promises cash back or other rewards, and appears to be connected to the original transaction.
When the shopper clicks "continue" or "yes," the shopper enters into a new financial contract with a membership club. The shopper's credit card information is sent to the membership club company, which charges monthly fees.
The three Internet companies said they have put additional safeguards into effect.
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