This is a great article by Thomson Reuters that I think is very important and could affect some of us.
WASHINGTON, July 28 (Reuters) - The U.S. Senate Commerce Committee issued a subpoena on Tuesday to Vertrue Inc [VELOHV.UL], an online marketing company accused of deceptive practices involving unauthorized credit card charges for membership fees.
The subpoena resulted after the company failed to produce information about business relationships sought by committee staff who met with company lawyers and engaged in extensive telephone conversations with them in June and July, the committee said.
The committee sought information outlined in a May 27 letter as state attorneys general, consumer advocacy groups and individual consumers were complaining the company charged membership fees in discount programs without their knowledge, according to the subpoena.
In the May letter, the Norwalk, Connecticut-based company was asked to disclose its business relationships involving online membership services or discount clubs.
The letter also sought internal discussions regarding Internet consumers accidentally or unknowingly signing up for an online membership service and subsequent consumer complaints.
Vertrue's Web site says the company operates a diverse group of marketing businesses involving healthcare, personal property, security/insurance, discounts and personals.
It is owned by Velo Holdings, a private investor group consisting of One Equity Partners, Rho Ventures, Brencourt Advisors, and certain members of Vertrue's management, according to the company's Web site.
"In these difficult economic times, American consumers are struggling more than ever to keep up with their mortgages, bills and other financial obligations," Committee Chairman John Rockefeller said in a July 28 letter to Vertrue Chief Executive Gary Johnson.
"Allegations that your company is making this situation worse by charging consumers for services they do not want or use are extremely troubling," the West Virginia Democrat said.
According to the subpoena, Johnson was ordered to appear before the committee on Aug. 18. Rockefeller said his appearance is unnecessary if the company complies with the subpoena.
Company spokesman George Thomas said the company has submitted voluminous amounts of information already but was reluctant to disclose consumer account details.
"We requested that the committee issue the subpoena to protect consumers' personally identifiable information such as bank account information, credit card information, name, address, etc." Thomas said. (Reporting by John Poirier; Editing by Tim Dobbyn)
© Thomson Reuters 2009 All rights reserved
Found at: http://www.reuters.com/article/americasRegulatoryNews/idUSN2815353420090728
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