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Rockefeller seeks info from online retailers

By Kim Hart - 11/06/09 12:52 PM ET

Sen. Jay Rockefeller, chairman of the Senate Commerce Committee, sent letters to 16 online retailers as part of the panel's investigation of companies that appear to share customers' credit card numbers with other e-commerce companies.

The committee has been investigating three companies — Affinion, Vertrue and Webloyalty — since May. These companies appear to sign agreements with Internet retail sites to receive personal information, such as credit or debit card numbers, after making online purchases.

Rockefeller (D-W.Va.) sent letters to companies including Fandango.com, Orbitz.com, Hotwire.com and Shutterfly.com to find out more about this business practice.

Here is an excerpt from the letter sent to Priceline.com:


      "It is my understanding that Priceline.com is currently partnered with Affinion and engages in these controversial practices in its online business. Priceline.com apparently allows Affinion to present enrollment offers to its online customers as they check out of the Priceline.com site, and has agreed to pass Priceline.com customers’ billing information, including their credit card or debit card numbers, to Affinion via a so-called 'data pass' process.
       The Committee has been investigating allegations that these post-transaction offers, when combined with the 'data pass' billing process, confuse online consumers and cause them to unknowingly and inadvertently become enrolled in membership clubs offered by Affinion. These consumers are then charged on a monthly basis for a service they did not want and are unaware they have."

Rockefeller asked if the company had received any complaints from customers and if customers are aware of the business arrangement. He requested answers by Nov. 14.


Source:
http://thehill.com/blogs/hillicon-valley/technology/66727-rockefeller-seeks-info-from-online-retailers
Phillip J. Bond’s ‘Tech Execs’ appears here on The Hill's Hillicon Valley Blog occasionally.

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