Consumer Class Action Filed Against Webloyalty.com Alleges Deceptive Online Sale of "Reservations Rewards" Memberships

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Wexler Toriseva Wallace LLP files nationwide class action for consumers who were charged by Webloyalty.com for "Reservations Rewards" through deceptive pop-up advertising.

On October 4, 2006, the law firms Wexler Toriseva Wallace LLP, Green Welling LLP and McCallum, Hoaglund, Cook & Irby LLP filed a class action complaint on behalf of consumers nationwide, alleging that Webloyalty.com, with its online retail partner, 123inkjets.com, has unlawfully obtained consumers' financial information and used this information to charge for a membership known as "Reservations Rewards" through deceptive "pop-up" advertising. Reservation Rewards is a membership program that, according to the lawsuit, provides discounts on dining and tourist attractions, along with "travel protection" such as roadside assistance, hotel overbooking and baggage insurance. The class action complaint, filed in Los Angeles federal court (Case No. 06-06329), alleges that the way Webloyalty.com and its partners enroll consumers in Reservation Rewards violates California consumer protection laws and federal privacy and electronic funds transfer laws.

The lawsuit alleges that prior to completion of an online retail transaction with a Webloyalty retail partner, a pop-up advertisement appears on the consumer's computer screen, offering a $10.00 next purchase discount or coupon reward. The complaint states that If a consumer clicks on it, however, their confidential financial information is secretly transmitted from the online retailer to Webloyalty. The complaint further alleges that Webloyalty, in turn, uses this confidential information to enroll consumers in a Reservation Rewards membership for which it collects monthly charges after the expiration of an alleged 30-day "free trial" basis. The enrollment is on a "negative option" basis, according to the complaint, meaning consumers are charged each month until they discover it and manage to cancel. The complaint alleges that as a result of Webloyalty's conduct, thousands of consumers unknowingly enroll in, and pay for, Reservations Rewards memberships. In addition, the lawsuit alleges, their confidential financial information is compromised by Webloyalty.com and its retail partners.

According to Mark J. Tamblyn, a partner in Wexler Toriseva Wallace's Sacramento office, "thousands of consumers have fallen prey to this invasion of privacy and deceptive conduct. Complaints about Webloyalty's practices are rampant. Our firm is dedicated to both putting a stop to this conduct and returning the membership fees to consumers."

Wexler Toriseva Wallace LLP (http://www.wtwlaw.us) is a national leader in prosecuting class actions and other complex litigation on behalf of consumer and business clients in state and federal courts throughout the United States. The firm is based in Chicago, Illinois and maintains additional offices in California and West Virginia. Contact: Mark J. Tamblyn (916) 568-1100.

Additional Contacts:

Green Welling LLP (http://www.classcounsel.com) represents a wide range of individuals and businesses in class actions and other complex litigation in state and federal courts across the nation. This firm is based in San Francisco, California. Contact: Charles D. Marshall (415) 477-6700.

McCallum Hoaglund Cook & Irby LLP (http://www.mhcilaw.com) represents individuals and businesses in matters ranging from consumer fraud class actions to commercial business litigation. The firm is based in Vestavia Hills, Alabama. Contact: R. Brent Irby (205) 824-7767.

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MARK TAMBLYN
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