State of Iowa v. Vertrue Incorporated: A Connecticut-based marketing company must pay more than $40 million in restitution and penalties for allegedly duping hundreds of thousands of Iowa residents into signing up for buying club memberships they mostly did not want or use, the Iowa Supreme Court recently ruled.
Vertrue, located in Norwalk, and formerly known as Memberworks Inc., is a buying club that provides members with discounts for products purchased online, including books, music, clothing and fitness programs. Customers are required to pay monthly membership charges of up to $19.95 per month. To entice customers, the company frequently uses "cash back rewards," gift cards and free membership offers.
