February 28th, 2009High Street shops suspend business with discount group Webloyalty
High Street stores Thomas Cook, Asda, BOQ, Debenhams and HMV have severed ties with the UK’s one of the biggest internet discount firm, after receiving wave of complaints regarding the scheme.
Angry shoppers raised hundreds of objections after it came to light that they were signed up to pay monthly membership fees of £10, under company’s Shoppers Discounts & Rewards scheme, without consent or prior intimation of terms.
B&Q, which removed the website Shopper Discounts & Rewards from its affiliate network immediately after being informed by shoppers, thanked them and apologised to those who had been inconvenienced by the use of this site.
Webloyalty registers members by placing pop-up ads with an offer of £15 discount on future purchases. The registration form states that by entering personal data and applying for discount shoppers agree to subscription.
According to Graham Charlton at digital publisher E-consultancy, this statement is misleading but not illegal.
In January, Webloyalty had an out-of-court settlement after facing legal action against its Reservations Rewards scheme in the US.
Webloyalty’s spokesperson tried to defend that some customers, regardless of clear and conspicuous disclosures, still complained of being unaware or have forgotten their enrolment in membership scheme. He claimed it was false to suggest that consumers were signed up without consent or were kept in dark. He declined to divulge anything on refund of fees over sign-up.
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