The Darth Vader of mobile marketing

Hazel Rycroft

Marketing companies, Webloyalty, Affinion, and Vertrue have run into some trouble over their Internet marketing techniques. New York Attorney General Andrew Cuomo has been investigating complaints about the practices of the companies that they represent. 

They are post-transaction marketers; the three firms present pop-up ads to online shoppers when they're finalising a transaction. These pop-ups look like discount coupons and advise the customers that they will receive discounts or cash-back coupons if the shopper will provide an e-mail address or user name. By providing this information the customer is agreeing to join a newsletter, which incurs a charge of up to $20 a month. Retailers, without the knowledge of customers, then automatically forwarded the billing information.

Many consumers believe the only way that their credit cards can be charged is if they key in their card details. "This online scheme has impacted the finances and tried the patience of tens of millions of consumers nationwide," Cuomo said in a statement. "Well-known companies are tricking customers into accepting offers from third-party vendors, which then siphon money from consumers' accounts."

All three companies have now back peddled, but it leads to some serious questions about marketing practices on the web. 

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