The headline from CNET: “Feds: Top e-tailers profit from billion-dollar Web scam”

Words like “scam,” “fraud,” and “arrest” filled the air during a Senate hearing on Tuesday that focused on the controversial marketing companies that allegedly dupe consumers into paying monthly fees to join online loyalty programs.

Vertrue, Webloyalty, and Affinion generated more than $1.4 billion by “misleading” Web shoppers, said members of the U.S. Senate Committee on Commerce, Science and Transportation, which called the hearing. Lawmakers saved their harshest rebuke for Web retailers that accepted big money–a combined sum of $792 million–to share their customers’ credit-card information with the marketers.

When you do business with an online retailer there is a privacy policy somewhere on the site. –”Privacy Policy,” makes you feel safe doesn’t it?

Well if you can wade through the legalese you will find that they can share your data with other under terms that allow your credit card data to be shared with affiliates. –Which is to say: pretty much anyone they damn well please.

There is money to be made tricking people into signing up for these so called “loyalty programs.” Billions are made by the company running the con, but millions are made by the retailers you should be able to trust by selling your credit card data. This outright scam is legal under both the law and the company’s tos.

Now the senate is holding hearing and the scam artists are telling the committee that they will use something besides you email address to sign up.

The problem with this scenario is that the retailer can sell credit card data to scammers and not only not violate any laws but to make a serious profit all the while knowing that the source of the information is unlikely to ever be reveled to the consumer.

No matter how careful you are to protect yourself from identity theft, the bad guys can buy all your data from the company where you purchased the latest Harry Potter book.

Some of the retailers that partnered with Affinion, Webloyalty, or Vertrue.
Travelocity
US Airways
Barnes and Noble
FTD
Victoria’s Secret
Pizza Hut

And the list of companies who have no qualms about helping rip you off goes on practically forever.

I will no longer be doing business with Barnes and Noble. –It’s a shame that they won’t even notice I’m gone.

Read the CNET article all the way to the bottom. There you will find an image listing the companies that have sold you out.

“What’s happening is many online merchants have decided to betray their customers’ trust.”
–Sen. John Rockefeller