Buying club settles with Iowa AG

By Bryan Cohen | Jun 9, 2014

DES MOINES, Iowa (Legal Newsline) - Iowa Attorney General Tom Miller announced an agreement on Friday with a Reno, Nev.-based online buying club to resolve allegations it charged Iowans for membership programs they likely were not aware of.

Aragon Interactive, doing business as A.I. Interactive Inc., allegedly charged hundreds of Iowans for memberships in MyBuyClub and MyTripSavers without them knowing they had enrolled. Aragon allegedly failed to make specific disclosures, including the disclosure of cancellation rights, when consumers were enrolled in the buying clubs.

"When companies follow our state's consumer protection laws, anyone enrolled in a buying club has clear notice and is unlikely to be the victim of unwanted charges," Miller said.

In one alleged instance, an Iowa consumer contacted Aragon about credit card charges from both buying clubs that he said he didn't recognize or authorize. Aragon allegedly refused to issue a full refund because he didn't cancel the membership within a 14-day trial period.

"Aragon claimed that the Iowan had signed up for a trial membership when he ordered an unrelated product, but the consumer disputed that he ever agreed to it," Miller said. "In his complaint, the consumer wrote, 'I do not think that not saying no means yes.' He's right."

Under the terms of an assurance of voluntary compliance, Aragon and Adam Levinter, the company's owner, must pay approximately $14,000 for refunds to Iowa consumers charged for the membership programs. Aragon must also comply with Iowa's Buying Club Membership Law for future enrollments.

More News

The Record Network