The New York State Attorney General's office is investigating 22 popular online retailers "that deceptively link unsuspecting consumers to fee-based membership programs that charge unauthorized fees under the guise of discount offers." Unfortunately for GameStop, its GameStop/EBgames online stores made the list.
Attorney General Andrew M. Cuomo's investigation "found that when consumers shop online from familiar retailers, they are often presented with a discount or cash-back incentive offer as they complete their purchase. When consumers click on the discount or incentive banner, they are unknowingly directed to a membership program seller’s Web page that is separate from the online retailer’s site. The consumer is then instructed through large, colorful print and voice prompts to accept the discount or incentive. Information about joining the membership program and its ramifications, including the fact that the consumer is agreeing to transfer his or her credit or debit card account information, is buried in fine print and cluttered text. Small and recurring charges then begin to appear on consumers’ credit or debit card bills from unfamiliar companies. Because of the low dollar amount, the charges may go unnoticed for some time."
The investigation found that the membership program sellers generate revenues of more than $1 billion per year, "much of which is amassed through fraud."
Online movie ticket retailer Fandango has already moved to end such practices. For its part, GameStop plans to fully cooperate with the Attorney General. "I can confirm that we were subpoenaed," GameStop spokesman Chris Olivera told Kotaku. "We are still reviewing the matter but do intend to work fully with the New York AG's office. Beyond that, I would not be able to provide any additional comment."
You can check out the announcement from Cuomo's office for more on this matter.
