My previous blog entry regarding my unwitting "membership" with Reservation Rewards (RR) was noticed by a gentleman who wrote me some very informative emails about not only WebLoyalty (WL) and RR, but also various other companies which operate in the same fashion. Suffice it to say that the business model of getting people to sign up for a discount coupon only to ensnare them in an ongoing membership is alive and well.

My entry was also noticed by WL, and I received a friendly email from someone in its consumer affairs department named Mary. In her email, she explained that WL "protects its reputation and monitors the blogosphere to ensure information posted on our company is truthful and accurate." She said that, despite my cynicism on their phone system being down when I tried to reach them to cancel my membership, it was indeed down only temporarily. I take her word for it.

She also explained that the reason I couldn't find my email address in their online database was that it was actually my wife who was registered. She canceled that membership and refunded the dues we had been charged.

She followed up with another email explaining that the unwitting membership occurred at the end of my wife's transaction with Shutterfly.com (not Fandango.com, as I had originally speculated). She said that my wife must have agreed to the membership since she hit "Yes" buttons and entered her email address. She also said that the "Offer and Billing Details" were available for review. She stated that an email was sent to my wife afterward.

I don't doubt for a minute that the details were available for review. I don't doubt that "Yes" buttons were pressed or that an email address was entered. My wife did not, as best as I can determine, receive the email, but it was right around the time she changed emails addresses. In any event, that email (a copy was provided by Mary) does not mention the fees or credit card charges that would appear each month. Nevertheless, I don't doubt that what WL and RR does is perfectly legal. However, it not, in my opinion, ethical. Here is a portion of my email response to Mary (edited slightly):

Look, I understand that what your company is doing is, in all likelihood, legal. I do not, however, approve of a business model which seeks to fool people. Yes, I am sure the "Offer and Billing Details" explained that her credit card information would be used to charge her each month. Yes, I am sure she entered her email and hit OK. I am also sure (although, like I said, I will confirm it) that she didn't read those details. She probably thought she was still dealing with Shutterfly. She figured that she was just getting $10 bucks off her next order, with no strings attached, just as she gets those offers/coupons from Shutterfly in the regular mail.

You can rationalize it all day long, but I would wager a large sum that a *vast* majority of your "members" are unwitting. They made a purchase with some trusted vender, an offer popped up for some coupon, they figured they were still dealing with that vendor, hit OK, entered an email, and didn't give it another thought. Let's face it, people take their time and are mentally engaged *before* a purchase is made (picking out an item or comparing it) and *during* the purchase itself (carefully entering credit card information and whatnot). But, once the "Confirm Order" button is pressed, people are on mental-automatic. The purchase is done, no need to be that careful anymore. Oh, look, a $10 coupon! Sure, hit OK...

Not convinced? Then why not include text right next to, or above, the first OK button which says, "I agree to be billed monthly per these agreement terms," with the last two words made into a hyperlink to the "Offer and Billing Details". Hmmm? You see, the "success" of your business is based on people not noticing the billing. Do you really think most people (any?) will sign up to be billed $10 each month to save $10 on a purchase?

Still not convinced? Then why have I read on the internet many, many stories about others who have become unwitting members?

Mary, all that said, I appreciate your response and followup.

I have spent far more time on this incident than I have wanted and want to end it here, but I felt an obligation to share my story and WL's response. To WebLoyalty and Reservations Rewards credit, they have refunded the fees charged, have canceled the account, and have been responsive once they noticed my blog entry. Would I have gotten such a resolution without the blog? I don't know. When they present their offers, should they state far, far more clearly and obviously that an fee will be charged each month in perpetuity? Absolutely.