Monday, November 30, 2009

Cyber Monday Caution

Cyber Monday is supposed to be a day when online sales soar through the roof, and plenty of retail stores spend their time promoting big discounts on items offered through the internet.

But Cyber Monday is also coming with a word of caution from the Texas Attorney General this year: don't trust every web site you come across.

Greg Abbott is charging several price-comparison sites with misleading online shoppers about the quality of certain internet merchants. Abbott warned some web sites promised unbiased comparisons of products, but secretly accepted cash for high ratings, according to a press released from the AG's office.

The state has filed legal action against Intercept, L.L.C., according to a statement from the AG's office, which says the company operates multiple price comparison sites, including: Shopcartusa.com, Diduprice.com, Flyingprices.com, Digitalsaver.com, and Pricingdepot.com.

The lawsuit has led to an agreement, where Intercept, L.L.C. promises to correct its unlawful practices and pay a fine of $300,000, or stop doing business by the end of November.

Investigators found the web sites were operating under a "cash-for-ratings" scheme, meaning certain retailers paid the company for higher rankings to spice up their appeal to consumers. The action is being taken as the holiday season begins.

Another lawsuit named Everyrpice.com Inc., which the Attorney General's press statement said operates Everyprice.com and Lowpricedigital.com, for "similar infractions."

“With this year’s holiday shopping season kicking off in the midst of a down economy, many savvy Texans will try to maximize their dollars by using the Internet to research the highest-quality vendors with the lowest prices,” Attorney General Abbott said.

“But online shoppers need to know that the Office of the Attorney General has charged multiple Web sites with unlawfully promising unbiased rankings while secretly accepting undisclosed payments for inflating sellers’ online ratings. So Texans should be wary and carefully consider their sources, because some Web sites may not be providing the unbiased ratings they promise.”

Some of the sites like Everyprice.com claims to be an unbiased, honest internet price comparison site. But the AG's office says sites like these steer shoppers in the wrong direction.

The state is seeking civil penalties of up to $20,000 per violation of the Deceptive Trade Practices Act, according to the Attorney General's web site.

What Can You Do?

If you believe you may have been involved in any of the schemes from the web sites the Attorney General's office is targeting, you can file a complaint with the Attorney General's office. The toll-free complaint line is 1-800-252-8011 or file a complaint online at www.texasattorneygeneral.gov.

0 comments: