“Consumer Savings Clubs”

October 2014: After denying a motion to file a second amended complaint in July 2014, a federal judge granted MasterCard’s motion to dismiss finding that, among other things, plaintiffs make “general allegations about electronic, mail, and telephone conversations” without including facts about specific misleading statements, when the statements were made, and who made them.

May 2014: Plaintiffs voluntarily dismissed three of the defendants (Vertrue, Inc., Adaptive Marketing, LLC, and Velo Holdings, Inc.). The dismissal was with prejudice and the reasons for the dismissal have not been disclosed.

April 2014: After voluntarily dismissing claims against two companies (MyLife.com and Oak Investments Partners XII, L.P.), plaintiffs filed an amended complaint against several other companies (Vertrue, Inc.; Adaptive Marketing, LLC; Velo Holdings, Inc.; and MasterCard International, Inc.) for allegedly using a deceptive marketing scheme for “consumer savings clubs” (which offer members who pay a monthly fee discounts to retailers, restaurants, and movie theaters). According to the complaint, the companies’ advertisements contain vague language and hidden opt-outs and disclaimers and, as a result, consumers do not realize they are joining savings clubs – such as At Home Rewards and SavingsSmart – when they click through them. In addition, the complaint alleges that companies fraudulently charge consumers’ credit cards. (Chi et al v. Vertrue, Inc., Adaptive Marketing, LLC, Velo Holdings, Inc. and Mastercard International, Inc., Case No. 14-cv-00614, N. D. GA.).

 

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When a complaint is dismissed with prejudice, it cannot be refiled.

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