Nielsen’s Nook

Nielsen’s Nook
Nielsen’s Nook
Contemplative, reflective, and irenic we pray.
Print Print

The Drugstore.com & ReservationRewards.com Scam

Will Nielsen
June 29th, 2008
Tags: •


This is not the run of the mill Nook post, but I thought I’d give Google the benefit of an account of some very shady internet practices that Drugstore.com is using. Last month we purchased some items from Drugstore.com and apparently there was an obscure “box” that was checked (by default?) that got us a free trial membership at ReservationRewards.com.
Apparently the trial period expired and a $12 fee showed up on our credit card. I called Discover Card and they said there was nothing they could do about it (not encouraging about Discover Card’s commitment to our family’s financial integrity). I called ReservationRewards.com and they explained that the Terms and Conditions of our Drugstore.com purchase allowed them to begin making membership charges once the Free Trial period ran out.

What if you or I were people who did not catch the charge the first time or the second time or more? Multiply that times the number of people on the internet. Fortunately, ReservationRewards.com has said they will refund the full sum of $12.00, although I did have to ask for the full sum to be refunded.

So wait, wasn’t it ReservationRewards.com that took my money? Yes, and at root they are the ultimate online rip-off example. However, Drugstore.com and other companies that pass on our information for profit (or really any reason at all!) are just as culpable in my view.

To have a Terms of Service agreement that goes beyond “Customer will agree to pay for product purchased at this storefront” is really fishy and begs the question why a TOS is needed at all. Have you ever gone into your local grocery store and upon the point of trying to purchase some eggs, milk, and bread the cashier asks, “Mr. Nielsen, before you purchase these items, have you read and submitted to our Terms of Service?” Huh? No, I just want my groceries, thanks!

What to do if your the next victim

First, call Reservation Rewards at 1-800-732-7031 and ask for a full refund. I am not sure how they are handling things if you have noticed that they have been charging you for months for a membership you did not know you had.

Call your credit card company and complain that they would honor such a Terms of Service for any charge that would come to your account like this. The representative at Discover Card knew about the practice and had the Reservation Rewards phone number ready when I called.

File a complaint with the Better Business Bureau.

Last, when you’re notified about a class action suit against Reservation Rewards, make sure you sign on. This practice is ridiculous and I can’t imagine a Class Action suit far off.

Investigation Pending…

See comments for status…

Other Online Posts About this Scam

5 Responses to “The Drugstore.com & ReservationRewards.com Scam”

UPDATE:
==========================

I did in fact receive a full $12 refund from Reservation Rewards today on my Discover Card.

Left by Will Nielsen on July 2nd, 2008

I didn’t figure it out for 10 months or so and they still refunded all of my money. Note that this is an essential part of their “business”. It relies on a) volume and b) not getting in trouble. The latter means being very eager to resolve any complaints.

Another key point is that when you call them, ask how you got signed up (which web site). Then complain to that web site and make it clear that you will no longer be their customer and will actively tell others to avoid them. It’s important to make it clear to web sites that sign up with Reservation Rewards that they will LOSE customers. That’s the only thing that will ultimately cause them to break their affiliation.

Left by Alex Miller on July 7th, 2008

Good point, Alex.

You, and others who have multiple months of charges, also have ten months of interest that they collected on your money and additionally that you may have paid to your credit card company. I’d like to see litigation that reimburses victims for their accrued interest on both counts.

Left by Will Nielsen on July 7th, 2008

Still getting a lot of hits on this post. It’s very sad that so many people have been hit by this exploitation.

Left by Will Nielsen on July 8th, 2008

I received an email on July 14 from Mary O’Reilly with Webloyalty Consumer Affairs at Reservation Rewards. She presented their case with documentation. I am looking into their case and to give the benefit of the doubt, while I am reviewing Mary’s case, I have suspended the above post excepting the links to the other accounts of the alleged bad experiences people have had with Reservation Rewards.

I will post my findings and argument for or against Reservation Rewards here in the comments section of this post.

Left by Will Nielsen on July 15th, 2008

Something to say?

View blog authority