Iowa high court slams marketing company for fraud - WXOW News 19 La Crosse, WI – News, Weather and Sports |

Iowa high court slams marketing company for fraud

IOWA CITY, Iowa (AP) - The Iowa Supreme Court is ordering a Connecticut-based marketing company to pay roughly $40 million in restitution and fines for duping hundreds of thousands of Iowans into signing up for buying club memberships they did not want.

The court ruled 6-0 on Friday that Vertrue Inc.'s mail, telephone and Internet solicitations violated Iowa's consumer protection laws. Since 1989, the company had enrolled 864,000 Iowans in programs in which they had access to discount goods and services.

Justices said most Iowans were enrolled unwittingly into the programs after they had accepted free gift cards or trial memberships, and were unaware that they had to cancel to avoid recurring monthly charges.

The ruling is a victory for Attorney General Tom Miller, whose office has spent nearly a decade investigating the company's practices.

Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and WXOW. All Rights Reserved.
For more information on this site, please read our Privacy Policy, Terms of Service and Mobile Privacy Policy & Terms of Service.

Persons with disabilities who need assistance with issues relating to the content of this station's public inspection file should contact Administrative Assistant Theresa Wopat at 507-895-9969. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, at 888-835-5322 (TTY) or at fccinfo@fcc.gov.