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Indiana consumers to receive payout in settlement with negative option marketer

October 11, 2013

Indiana Attorney General Greg Zoeller announced Thursday that a company accused of deceptive advertising has entered into a $30 million settlement with 48 states, resulting in $238,900 in money for Indiana customers.

Affinion and its subsidiaries Trilegiant and Webloyalty will pay the multi-million settlement over allegations that they misled consumers into signing up and paying for discount clubs and memberships. Those programs included credit monitoring, roadside assistance and discounted travel services.

More than 3,700 Hoosier residents are eligible to receive refunds, according to the attorney general’s office.

One of the marketing practices that came under fire was live check solicitation. Consumers were sent via direct mail an offer that appeared to be a check. When deposited, consumers unknowingly authorized Affinion to enroll them in membership programs and bill them each month indefinitely.

“Consumers have alleged that Affinion charged them for services without their authorization or knowledge, and, once consumers learned they were being charged, some had trouble canceling or getting a refund,” Zoeller said in a news release.  “Today’s agreement highlights the importance of states working together to ensure consumers are treated fairly and are appropriately refunded.”
 

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