| ARTICLES | 2009 | JULY |

OFT - OnLine Discounts Schemes
Online discount scheme agrees to change sign up process.

The operator of an online discount shopping club has agreed to revise its advertising and payment pages after the OFT raised concerns that consumers could be misled.
 
Adaptive Affinity Limited runs 'High Street Max', a paid-for membership service offering discounts across a range of high street and online shops and services.
 
The company advertises to consumers shopping on other retailer's websites and has agreements with Lastminute.com and Millet Sports. It previously had a similar agreement with Vistaprint to advertise schemes called 'VPrewards' and 'Premier Club'.
 
The schemes offer consumers who have finished making a purchase from one of these host websites the opportunity to receive a 'cash back' off their next purchase together with a 'free trial' membership to the discount club. If the consumer agrees to the offer, but does not cancel during the free trial period, they are charged a monthly membership fee of up to £14.95. More than 130,000 consumers joined the schemes in the 12 months to the end of April 2008.
The OFT raised concerns with the company that its advertising and sign-up process may not be clear to consumers. The company has agreed to make changes, including making it clearer that the consumer is entering into an agreement with Adaptive Affinity, rather than the website from whom a purchase has just been made.
 
Adaptive Affinity Limited has given undertakings to the OFT, under the Enterprise Act 2002, in relation to alleged breaches of the Consumer Protection from Unfair Trading Regulations 2008.
 
Heather Clayton, OFT Senior Director of Consumer Protection said:
 
'The internet offers a convenient and simple way for business to promote new and innovative products or services to consumers. However, it is important that consumers know exactly who they are dealing with and on what basis, which means in particular that payment processes must be clear.'
 

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(Source: OFT)

| ARTICLES | 2009 | JULY |