Your favorite eComm site may be scamming you

By Peter | November 18th, 2009

ecommerce-scamsIf you shop at popular eCommerce retailers like Orbitz, Travelocity, Buy.com and 1-800-Flowers.com, the US government would like you to know that you could be getting ripped off. Senator Rockefeller, who has a somewhat mixed reputation among internet types, may have won a few new friends by undertaking an investigative report on “Aggressive Sales Tactics on the Internet and Their Impact on American Consumers”.

He ordered the research in anticipation of an upcoming hearing on the subject, by the US Senate Committee on Commerce, Science and Transportation. The US government hasn’t exactly been successful in previous attempts to police the Wild West world of eCommerce, and who knows if this latest committee will actually lead to any action. But it’s interesting to see people in the highest levels of power in the US start to look at some allegedly devious practices by a few big name online retailers.

The report was looking at one particular controversial practice – “post-transaction marketing”. According to the report, this occurs after a customer has made a purchase on one of the offending sites. That customer is offered cash-back if they hit a confirmation button. But when they hit that button, surprise! Their credit card information is immediately passed along to a marketing company, who signs them up for a subscription to a package of not very useful services. And, to add insult to injury, they don’t even usually receive the cash rebate.

It’s pretty devious stuff, which is why it’s so surprising to see such big names appear in the report as companies who take part in post-transaction marketing. Besides the retailers mentioned above, some of the other ones on the list include: FTD, Priceline, Barnes & Noble, Avon, Hertz and even Pizza Hut! Because apparently Pizza Hut can’t make enough money by charging $22 for a large pizza…

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