Webloyalty

In re: Webloyalty.Com, Inc. Marketing and Sales Practices Litig., MDL Docket No. 1820 (D. Mass.).

Overview:

WW served as co-lead counsel in this consumer MDL litigation concerning deceptive internet marketing and selling strategies, unauthorized charges on consumers' credit cards, and non-cancellation of memberships. Honorable Joseph L. Tauro recently granted final approval of a nationwide settlement that, in part, allows consumers to recover up to 100% of unauthorized charges for enrollment in a Webloyalty Membership Program(s). The settlement also requires significant changes to disclosures made on Webloyalty Enrollment Pages as well as to post-enrollment notifications regarding Program enrollment and membership fees.

Background:

In November 2006, WW filed a nationwide class action complaint alleging that Webloyalty.com, in association with its web retail partners, unlawfully obtained consumers' confidential billing information and used this information to sell a sham fee-based membership programs, including one commonly known as "Reservations Rewards." Reservation Rewards is a membership program that purportedly provides discounts on dining and tourist attractions, along with so-called "travel protection" such as roadside assistance, hotel overbooking and baggage insurance. Many consumers were allegedly charged by Webloyalty.com for memberships in the Reservation Rewards program without authorization. Consumers reported that they were mislead by deceptive pop-up screens or advertisements presented during the check-out phase of an on-line purchase, often in the form of a coupon for an amount off a next purchase. Consumers also indicated that the pop-up or advertisement failed to sufficiently warn that by signing up for the coupon the consumer was also enrolling in a Reservation Rewards program with a recurring monthly charge of $9 to $11.


Consumers complained that they often first alerted of the membership when they spotted the charge on their credit card bill from WLI*RESERVATION REWARDS. Webloyalty.com and the Reservation Rewards program have an extensive history of complaints concerning deceptive marketing and selling strategies, unauthorized charges on consumers' credit cards, and non-cancellation of memberships following cancellation requests.

Consumers should always diligently check their credit card and bank statements for suspicious charges. If you have been charged by Webloyalty.com, WLI*RESERVATION REWARDS or for the Reservation Rewards or a similar program, please visit the Settlement Website at http://www.webmarketingsettlement.com/. You may also obtain information about the Settlement or obtain a Claim Form by calling 888-571-1765 or by sending a written request to the Settlement Administrator, c/o The Garden Group, Inc., P.O. Box 9265, Dublin, OH 43017-4665. In addition, you are welcome to contact our Sacramento Office or complete our confidential online form.

CASE UPDATE:

On July 14, 2009, the Honorable Joseph L. Tauro, United States District Court Judge for the District of Massachusetts, entered an order granting final approval of a nationwide class action settlement, resolving litigation regarding consumers' alleged enrollment in online membership programs without their consent and authorization and the unlawful transfer of consumers' credit and debit account information to charge fees for such programs on a recurring monthly basis. The Court's Order became effective on August 14, 2009 upon the expiration of the time period for filing an appeal. The Settlement, in part, allows consumers to recover up to 100% of unauthorized charges for enrollment in a Webloyalty Membership Program(s). The settlement also requires significant changes to disclosures made on Webloyalty Enrollment Pages as well as to post-enrollment notifications regarding Program enrollment and membership fees.

For more information about the Settlement, please visit the Settlement Website at, http://www.webmarketingsettlement.com/. You may download or obtain an Additional Benefits Claim Form through the Settlement Website, by calling 888-571-1765 or by sending a written request to the Settlement Administrator, c/o The Garden Group, Inc., P.O. Box 9265, Dublin, OH 43017-4665. Settlement Class Members who submit a timely Claim Form can receive a cash payment as well as cancel memberships in any of the Membership Programs. The estimated deadline for submitting a Claim Form and/or Additional Benefits Claim Form is January 11, 2010.