Sen Rockefeller Targets Affinion's Duplicitous "Live Check" Enrollment Process

Senate Commerce Committee Chairman Jay Rockefeller (D-WV) sent a letter to Nathaniel Lipman, President of Affinion Group asking for more information about Affinion's use of a "live check" enrollment process.

In his letter, Chairman Rockefeller states, "it appears Affinion is more aggressively using 'live checks' to enroll consumers in membership programs...this troubles me because consumer advocates, courts, and state and federal authorities have repeatedly described it as misleading, deceptive, and unfair." The process of using 'live checks' is akin to Affinion's use of aggressive online sales tactics to enroll consumers in services without their consent -- an issue that was the subject of a year-long Commerce Committee investigation.

How the "live check" enrollment process works:

• Affinion partners with companies that have already developed a financial relationship with consumers and mails "live checks" to those companies' customers.
• The check's envelope or packaging is branded with the logo of the company familiar to a consumer—let's call him John Doe—and prominently alerts Mr. Doe to a "CHECK ENCLOSED."
• The "live check" contained within the mailer is typically for a small amount, between $8 and $10, and is payable at JP Morgan Chase Bank.
• If Mr. Doe cashes or deposits the check, the company that has a prior financial relationship with him will transfer his billing information to Affinion.
• Affinion then "enrolls" Mr. Doe in one of its membership programs and begins charging a monthly, recurring fee to his credit card or debit card.