Webloyalty Seeks Court Dismissal of Fraud Suit
Webloyalty.com, a provider of technology-based affinity services, and Fandango.com, an e-commerce movie ticket company, have asked a court to throw out a class-action lawsuit claiming the two ripped off consumers with a coupon click fraud scheme.
The suit charges that consumers who make purchases at one of Webloyalty.com’s 75 or more partner sites—including Fandango.com—are offered a $10 cash coupon on their next purchase. But when consumers enter personal information to redeem the offer, their credit or debit card number is unknowingly transferred to Webloyalty. Webloyalty then bills consumers’ credit cards a $10 monthly fee for membership in its Reservation Rewards program, the documents said (P&I Sept. 20, 2006).
The complaint was filed Sept. 11 by Massachusetts resident Joe Kuefler in U.S. District Court for the District of Massachusetts.
In court documents filed Nov. 13 asking for the case to be dismissed, Webloyalty claims the disclosures about joining its rewards program are clear and accurate. It said it “discloses four times that membership in the program costs $10 per month after the initial free trial period, and that the amount will be charged to the credit card or debit card provided by the customer to Fandango.” A court date to hear the request has not been set.
Webloyalty said it was having trouble figuring out why the case had been filed since it had refunded the plaintiff the $10 charge after he requested that his membership be terminated.
“We have information on how every individual joins our services,” said Webloyalty CEO and co-founder Rick Fernandes. “It’s pretty clear what the person was signing up for and how the process works. It’s actually easier not to join a Webloyalty service than to join, which takes eight steps to do.”
In addition to the Kuefler case, two similar lawsuits have since been filed. One, in October, by the law firm Wexler Toriseva Wallace, LLP, Sacramento, CA, could not be reached for comment.
