Discount marketing scheme rapped by Office of Fair Trading

by Joe Lepper, Brand Republic 27-Oct-05, 07:00

LONDON – The Office of Fair Trading has taken action against a retail discount scheme involving a number of mail order catalogues, following complaints from customers that money was taken from accounts without their authority.

Customers who placed orders from mail order catalogues, including Home Shopping Selections and Scientific Golf, through fulfillment company US Euro Link were offered one month's free membership to the World For Less scheme that offers vouchers for high street stores.

However, the OFT has intervened after customers who did not cancel their membership within the month were automatically enrolled for a year's membership at a cost of £79.95. This was then taken from debit and credit cards used to buy mail order goods, without some customers realising.

Customers said they were not given adequate information about the scheme, thereby making membership to it an unsolicited service.

The companies involved have agreed not to charge customers without their permission and will not promote other schemes whereby customers have to choose to opt out.

The OFT said it was a breach of Distance Selling Regulations to demand payment or claim a right to payment for the supply of unsolicited goods and services. The OFT stressed that the firms involved deny any breach of these regulations, despite agreeing to take action.

Christine Wade, OFT director of consumer regulation and enforcement, said: "Consumers must receive clear and adequate information to allow them to make reasoned decisions about whether to purchase and before they are committed to payments upfront."

If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the Forum.