WASHINGTON, D.C. - The U.S. Senate Committee on Commerce, Science, and Transportation held a full committee hearing today on Aggressive Sales Tactics on the Internet and Their Impact on American Consumers.

**TODAY SHOW VIDEO SEGMENT HERE**

Witness List:

Mr. Ray France, St. Cloud, FL

Ms. Linda Lindquist, Sussex, WI

Professor Robert Meyer, Wharton School, University of Pennsylvania

Professor Florencia Marotta-Wurgler, New York University School of Law

Professor Prentiss Cox, University of Minnesota Law School

Key Quotations from Today’s Hearing:

“America is a country of businessmen and businesswomen. We all have a great deal of respect for enterprising people who develop good products and sell them in our competitive marketplace. But we are here today because we want to highlight the very important point that tricking consumers into buying goods and services they do not want is not okay – not even close. It’s not ethical, it’s not right, and it’s not the way business should be done in America.”

Chairman John D. (Jay) Rockefeller IV

“My country promised to take care of me when I returned home, but without laws to govern these unethical practices, my country is allowing me to be taken advantage of. This is a problem that must be resolved as it is not just vets who are victims but all Americans. If not today then tomorrow, or next week. The bottom line is, if left unchecked, these kinds of practices will spread out of control. Now that this issue has been brought to light it is imperative that the leaders of this great county are proactive and aggressive in putting an end to it.”

Mr. Ray France, St. Cloud, FL

“I am a college educated person who is online every day. I have made hundreds of online purchases over the last ten years. I have seen many scams and offers on the internet and have only been lured in by one, this one, due to the fact that the scam was associated with a reputable website and required just one click. Just last week, in fact, when I purchased the airline ticket for my son to travel to Washington, D.C. with me on AirTran Airways, what should appear on their confirmation page, but a ‘$20.00 cash back offer from Great Fun.’ You can bet that I will be sending AirTran an email regarding my disappointment in their choice of an affiliate.”

Ms. Linda Lindquist, Sussex, WI

“While these sales schemes pose the risk of financial harm for all consumers, it is a risk that is likely to be disproportionately shouldered by consumers who are the least equipped to absorb financial losses. Specifically, the practices are likely to be particularly effective when targeted at consumers of limited means for whom the small cash enticements promised by the programs would represent significant assets, and/or older consumers who have had limited experience in navigating the web.”

Professor Robert Meyer, Wharton School, University of Pennsylvania

“Studies have shown that consumers focus only on a few, salient aspects of a product or service when deciding on a purchase. By highlighting the ‘reward’ component of the offer and framing it as something that the consumer should be pleased to receive, marketers make the ‘good news’ as salient as possible. And because post-transaction marketers present themselves to consumers in an unexpected fashion at an unexpected juncture of the transaction, they violate the norms of online commerce and should be held to a higher standard of disclosure and transparency.”

Professor Florencia Marotta-Wurgler, New York University School of Law

“Preacquired account marketing has no legitimate commercial reason to exist yet drains the wealth of consumers who are unaware their accounts are being charged. Consumers are exposed to these charges for unwanted services when e-retailers, other retailers and financial institutions sell special access to their customers’ accounts in return for a share of the gain. Congress should enact legislation to protect American consumers from such abuse.”

Professor Prentiss Cox, University of Minnesota Law School

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