Discount Savings Website Must Face Electronic Fund Transfer Lawsuit
By Judy Greenwald, Business Insurance, March 2017
A federal appeals court has reinstated Electronic Fund Transfer Act charges filed by a man who allegedly signed up for a $10 coupon from an online game provider and later found he was charged $264 by a discount savings website.
When Kevin Park bought a gift certificate for his minor son from Gamestop.com, operated by Grapevine, Texas-based GameStop Corp., he saw a coupon for $10 on the GameStop purchase confirmation page, according to Tuesday’s ruling by the 9th U.S. Circuit Court of Appeals in San Francisco in Kevin Park v. Webloyalty.com Inc.
Thinking he was entering his email address to claim the coupon, he clicked a confirmation button, according to the ruling. Two years later, he discovered he was being charged $264 by Stamford, Connecticut-based Webloyalty.
Mr. Park filed a putative class action lawsuit against Webloyalty on charges including violation of the EFTA. The U.S. District Court in Pasadena, California, dismissed the case, and Mr. Park appealed.
A three-judge appeals court panel reinstated the EFTA charges. Mr. Park’s allegations regarding his reliance on the $10 coupon “and the deceptive nature of the ’data pass’ method of acquiring his billing information, were sufficiently detailed to make an EFTA claim” based on an unauthorized electronic funds transfer, said the ruling.
Another issue here is the EFTA requires a consumer be provided with a copy of the electronic fund transfer authorization, said the ruling. “Park’s allegations regarding his lack of knowledge of the purported authorization, and Webloyalty’s failure to provide a copy of such authorization were sufficient on their face,” said the ruling, in reinstating the charge.
In December 2016, the 2nd U.S. Circuit Court of Appeals in New York reinstated unfair trade practices charges against GameStop.com and Webloyalty in a case where they were charged with leading an unwitting minor to join Webloyalty’s monthly membership program.
Categories
- Benefits Resources
- Bonding
- BOP
- Business Insurance
- Commercial Auto
- Commercial Property
- Company News
- Construction
- Crime Insurance
- Cyber Insurance
- Directors & Officers
- Employee Benefits
- Employment Practice Liability Insurance
- Entertainment
- General Liability
- Health Insurance
- Healthcare
- Healthcare Reform
- Homeowners Insurance
- Hospitality
- Manufacturing
- Medical Malpractice
- Mining & Energy
- Nightclubs
- Personal Auto
- Personal Insurance
- Professional
- Restaurants
- Retail & Wholesale
- Risk Management Resources
- Safety Topics
- SBA Bonds
- Security
- Seminars
- Technology
- Tourism
- Transportation
- Uncategorized
- Workers Compensation
Archives
- May 2021
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- November 2018
- September 2018
- August 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- February 2013
- November 2011
- October 2011
- September 2011
- July 2011
- June 2011
- March 2011
- November 2010
- October 2010
- September 2010
- April 2010
- February 2010
- November 2009
- October 2009
- November 2008
- August 2008