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Special Report on

Negative Option Marketing

negative option marketing special research report Photo by cmsdm.com
The Federal Trade Commission's recent enforcement action against deceptive negative option marketing programs as well as Commission actions involving credit card sales and credit card loss protection services were detailed today in testimony before the House Committee on Financial Services, Subcommittee on Financial Institutions and Consumer Credit. The testimony, presented by Elaine Kolish, Associate Director of FTC's Bureau of Consumer Protection's Division of Enforcement, included information about the Commission's recent crackdown against a group of buying clubs, including Triad Discount Buying Service, ...
established in 1955. In 2005, longtime competitor BMG Direct Marketing, Inc. (formerly the RCA Music Service or RCA Record Club) purchased Columbia House and consolidated operations. In 2008, the company was acquired by private investment group Nafaji Companies, and its name was changed to Direct Brands, Inc. Although Direct Brands shut down music mail-order operations in mid-2009, it continues to use the Columbia House brand to market videos in the U.S. & Canada, selling DVDs and Blu-ray Discs via the controversial practice of negative option billing .
REVIEWS AND OPINIONS
Vertrue distancing itself from loyalty marketing? | timberland ...
–>Last week we looked at Webloyalty’s steps to address the flood of consumer complaints that helped trigger a Senate Commerce Committee investigation in May. This week we’ll look at Vertrue, subpoenaed by the committee in late July when it didn’t comply with Sen. Jay Rockefeller’s (D-W. Va.) request for internal documents. First thing a consumer needs to know about Vertrue are the names of its various loyalty and other marketing programs, in case you have a mystery credit card charge you’re trying to track down. Good luck! You’ll be dealing with Vertrue’s Adaptive Marketing ... market research, surveys and trends
FTC Staff Issues Report that Offers Guidance on Online "Negative ...
The workshop focused particularly on Internet-based negative option offers, because they were relatively new and presented distinct issues regarding the form, content, and timing of disclosures. Negative Option Marketing There are four types of plans that fall into the negative option marketing category - prenotification negative option plans; continuity plans; automatic renewals; and free-to-pay or nominal-fee-to-pay conversion offers. First, in prenotification negative option plans, such as book or music clubs, sellers send periodic notices offering goods. If consumers take no action, sellers send the goods and charge ... market research, surveys and trends

SURVEY RESULTS FOR
NEGATIVE OPTION MARKETING

Hard to Escape from Negative Option Marketing
." Usually it is for a small amount, but the consumers profess to have no recollection of ever hearing of it - much less agreeing to purchase it. The company behind Simple Escapes, the subject of consistent complaints to consumer Web sites and government agencies over a number of years, is Vertrue, based in Stamford, Connecticut. Until late 2004, it was known as MemberWorks . Vertrue is what is known as a member services marketing company. Similar to a buying club, it enrolls consumers in its membership programs that provide discounts on travel, health services, clothing and other consumer products and services. The company ... industry trends, business articles and survey research
NYU's MS of Integrated Marketing Association (IMA)
Mark Sweney Guardian Unlimited Monday December 3 2007 The internet is set to overtake magazines to become the world's third largest advertising medium in 2010, according to a new report. Media planning and buying agency ZenithOptimedia's global advertising report estimates that in 2010 the internet ad market will be worth almost $61bn (29.5bn), compared with the magazine market at around $60.5bn (29.3bn). By 2010 the internet will account for 11.5% of global ad spend, trailing just TV, at a 37.5% share, and newspapers with 25.4% of an estimated $530bn (£257bn) total spend, according to Zenith. Internet ad spend is ... industry trends, business articles and survey research
RELATED NEWS
Online subscription auto-renewals can cost you money
and issuing guidelines on automatic renewal, or "auto-renew," a wallet-gouging tactic that fits under the name of "negative-option marketing." Automatic renewal has long brought home bacon for magazine publishers, but these days a diverse range of companies, including eHarmony , Classmates.com and even security honchos Symantec and McAfee have had their hands caught in your wallet doing it. The FTC slapped diet pill marketers for it, but that was more than a year ago. Auto-renew comes in shades. National Geographic seems to show up in my mail in perpetuity -- but I love the magazine, they're a nonprofit ... market trends, news research and surveys resources
Should Facebook add a dislike button?
this week that Facebook would "definitely think about" adding a Dislike button to the site, allowing users to express distaste for updates or pages on Facebook. But Zuckerberg is just humoring us: Facebook will never add a Dislike button, regardless of users' demands. Here's why: Demand for the dislike button There's certainly some demand for dislikes. In answer to Sawyer's question on whether a Dislike button would be considered, Zuckerberg replied: "We listen to all the user suggestions and it's something that we've thought about. You know, people like the Like button so much ... I dunno, ... market trends, news research and surveys resources

INFORMATION RESOURCES

Negative Option Report - Negative Options
negative option marketing. The FTC uses the phrase “negative option marketing” broadly to refer to a category of commercial transactions in which sellers ... technology research, surveys study and trend statistics
FTC To Hold Public Workshop on Negative Option Marketing
The Federal Trade Commission will host a workshop on January 25, 2007, in Washington, DC, to analyze the marketing of goods and services through offers with negative option features. The workshop, which will bring together consumer representatives, academics, and industry leaders, will address the pros and cons of such offers, discuss online marketing of such offers, and explore ways to make effective disclosures when such offers are made online. The workshop is free and open to the public. The Commission is also publishing a Federal Register notice soliciting public comment on the issues addressed by the workshop. Negative ... technology research, surveys study and trend statistics
NEGATIVE OPTION MARKETING AND ETHICAL THEORY
Today, negative option marketing turns the sales transaction around and requires that customers act to prevent a sale from taking place. ...
REAL TIME
NEGATIVE OPTION MARKETING
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QUESTIONS AND ANSWERS
Google Answers: Negative Option Marketing Payment Provider Leads ...
One of our clients has started a "Something Of The Month" club business using negative option marketing and they are now looking for a credit card and electronic check payment provider or bank that is able to absorb the naturally higher chargeback ratios this business system entails. We told them that they might have to go to an international provider. At this point we are looking for leads to build a proper business relationship with for this kind of payment and business model. Someone who understands the unique requirements of this industry. We don't need an analysis, but rather concrete leads of companies that accept ...
What is Google Treasure Chest - Talk Help
I'd be wary bro.  I almost signed up for this myself about 2 hours ago, but (thankfully) read the terms and conditions first.  By agreeing to get that starter kit or whatever you are actually obligating yourself to a $72 charge every month for access to this site.  The only way to stop it from happening is to call the customer service number before 7 days have passed.  That's 7 days from when you hit "submit", not from when you get your packet.  Many people have reported getting their first $72 charge weeks before they even received the packet.  In fact, in the past few hours I have ...