Do More With Reuters
Partner Services

U.S. Senate panel subpoenas marketing firm Vertrue

Tue Jul 28, 2009 10:05pm IST
 
Email | Print | | Single Page
[-] Text [+]

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.   Continued...

Construction workers work at a site as the sun sets in Chandigarh in this December 2006 file photo. REUTERS/Ajay Verma
Economy seen growing at 7.2 pct in FY10 - govt

The forecast reinforces the possibility that the government may start to unwind its fiscal stimulus in the budget.  Full Article 

Market Update

  • IndiaIndia
  • USUS
  • UKUK
  • Asia
  • Most Actives
Greece's Finance Minister Papaconstantinou addresses reporters during a news conference in Athens, January 20, 2010.
Eurozone agreed in principle to aid Greece

Euro zone countries have decided in principle to help debt-stricken Greece, a senior German ruling coalition source said.  Full Article 

FROM THE MARKETS

After the Bell
After the Bell

Reuters Money's Kshitij Anand updates you on the movers and shakers of the Indian stock market.  Blog 

SHOWCASE

"Claw Back" Pay
"Claw Back" Pay

Banks and regulators hope that threats to "claw back" pay if trades later blow up will rein in risk taking on Wall Street.  Full Article 

 
James Saft
Blaming Asperger's

COLUMN - Did Asperger's help cause the financial crisis?  Full Article 

 
Going Global
Going Global

With Volvo, Chinese eye M&A abroad to win at home.  Full Article 

 
Delivery Woes
Delivery Woes

Boeing 787 delivery schedule could slip - experts.  Full Article 

 
Central Banks Cautious
Central Banks Cautious

Reuters tracks the policies of the world's top central banks as the debate over global economic recovery rages on.   Full Coverage