Internet marketer Webloyalty to pay $5.2 million to settle NY complaints about sales tactics

Internet marketer Webloyalty settles NY complaints

NEW YORK — An Internet marketing firm has agreed to pay $5.2 million to settle New York complaints that it duped consumers into signing up for discount clubs with hidden fees.

Norwalk, Conn.-based Webloyalty.com also has agreed to give some of its customers refunds and to permanently abandon some of its past sales tactics.

New York Attorney General Andrew Cuomo (KWOH’-moh) announced the settlement Tuesday.

Cuomo had accused the company of using fine print and cluttered text to trick customers into signing up for services offering cheap movie tickets and restaurant discounts in exchange for small monthly fees.

Webloyalty says it had always made the terms of offers clear. But many shoppers complained they didn’t know about the fees until small charges began appearing on their credit cards.