Webloyalty, Fandango Named in Coupon Lawsuit
Online marketing company Webloyalty.com Inc. and online movie ticket seller Fandango Inc. were named in a lawsuit on Monday that accuses them of participating in a scheme where customers' credit cards are billed monthly fees without their knowledge.
The lawsuit in U.S. District Court in Massachusetts, said when customers bought from one of Webloyalty's partners such as Fandango and clicked on a pop-up window offering a $10 coupon on their next purchase, their credit card information was automatically transferred to Webloyalty and they were unwittingly enrolled in its "Reservation Rewards," program.
Once enrolled in Webloyalty's rewards program that promises dining movie ticket and shopping discounts, consumers' credit cards are billed up to $10 each month. The lawsuit is seeking class-action status and unspecified damages.
"Hundreds, if not thousands, of consumers have complained to Webloyalty and local, state and federal consumer protection agencies about the deceptive nature of its sales of its "Reservation Rewards" discount club product and its unauthorized access to their credit card information," the complaint said.
The plaintiff named in the lawsuit, Joe Kuefler, bought movie tickets from Fandango and was unknowingly enrolled in Webloyalty's rewards program.
The lawsuit also claims that the two companies violated consumers' privacy rights by disclosing and using their credit card information.
Representatives for Webloyalty and Fandango were not immediately available for comment.
Copyright 2006 Reuters Limited.
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