The Webloyalty Settlement: A Great Graphic Lesson in Marketing Practices

Yesterday morning, Wade wrote a story about the recent settlement agreement in a class-action lawsuit involving Connecticut-based Webloyalty, which runs various discount programs offered to consumers as they wrap up e-commerce transactions. The case involved allegations that Webloyalty violated state and federal laws by failing to disclose some details about its offerings, such as the monthly charges that showed up on credit card bills after customers agreed to the programs. In some cases, customers said they didn’t even know they had signed up for a program at all.

Now, it’s important to note that Webloyalty has not admitted any wrongdoing. It maintains, in fact, as Wade wrote (I’m quoting Wade here, not Webloyalty): “that the details about its charges have always been clear in the fine print and in the follow-up e-mails it sends to subscribers…”

Wade’s story has more details on the case and settlement. But I’d like to flag one point that has to do with changes Webloyalty has made in the way it markets its programs. The company was very helpful to us in our reporting and provided a fascinating graphic detailing those changes. I found the graphic extremely instructive about how marketing programs work and the way words and placements might influence outcomes and perceptions. I think you will, too.

You can find it here, or just click on the thumbnail image accompanying this story.

Bob is Xconomy's founder and editor in chief. You can e-mail him at bbuderi@xconomy.com, call him at 617.500.5926. Follow @bbuderi

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