TELECOM Digest OnLine - Sorted: Webloyalty, Fandango Named in Lawsuit

Webloyalty, Fandango Named in Lawsuit

Reuters News Wire (
Mon, 11 Sep 2006 19:04:10 -0500

Webloyalty, Fandango Named in Coupon Lawsuit

Online marketing company 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

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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