Thursday, January 28, 2010

Read about New York here - NY Attorney General Alleges Online Retail Fraud

New York

(Updates with comments from all three online membership companies.)


NEW YORK (Dow Jones)--New York Attorney General Andrew M. Cuomo said Wednesday his office is investigating 22 online businesses for allegedly linking consumers with discount promotions that end up charging them illegal fees.


Online sites of retailers including Staples Inc. (SPLS), Barnes & Noble Inc. (BKS), Avon Products Inc. (AVP), GameStop Corp. (GME), 1-800-Flowers.com Inc. (FLWS) and Orbitz Worldwide Inc. (OWW) "deceptively link" customers to fee-based membership programs, Cuomo said in a call with reporters.


The programs are run by third-party companies that charge unauthorized fees under the guise of discount ...

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