The office of New York Attorney General Andrew M. Cuomo is investigating
several well-known retailers, including GameStop
, for deceptive advertising practices. According to the office's announcement, GameStop and 21 other businesses are directing consumers to fraudulent discount programs where they unknowingly share credit card information with a third party. These third-party programs then place recurring charges on customers' accounts. "Well-known companies are tricking customers into accepting offers from third party vendors," said Cuomo, "which then siphon money from consumers' accounts."
Online movie ticket company Fandango has already agreed to stop the practice and pay $400,000 to a consumer redress fund. The Attorney General's office rightly warns that consumers should take care in reading all fine print when signing up for any kind of discount offer.
Are there any Joystiq readers out there that have run into this problem with GameStop? (You might want to check your credit card statement before you answer that.)
For clarification, as some commenters have pointed out, the investigation applies to GameStop's online business, not its physical retail stores.