Iowa AG Sues Buying Club Over Secret Memberships

Law360, New York (August 17, 2011, 7:56 PM EDT) -- The Iowa attorney general filed suit Tuesday alleging Stonebridge Benefit Services Inc. secretly obtained consumer credit card information and used other deceptive tactics to sign up more than 50,000 people for sales clubs without their knowledge, raking in $4 million from the scheme.

The complaint, filed by Iowa Attorney General Tom Miller in state court, alleges Stonebridge violated the Iowa Consumer Fraud Act and buying club law when it signed people up and charged them for memberships to various clubs, often without their knowledge or consent...
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