The state attorney general’s office in Ohio has decided to start taking action against credit card companies that are soliciting university students, filing lawsuits against four companies in connection with deceptive marketing practices and credit card solicitations to students from Ohio State University.
The decision to sue these companies resulted from the fact that several students have claimed they were enticed with free food if they would sign up for a credit card. Since the sign up requirement was not clearly stipulated in the advertisements, these companies violated Ohio’s Consumer Sales Practices Act. More specifically, the companies are being charged with failure to state the conditions of the offer, using bait and switch tactics in advertising, and using the term “free” without disclosing all of the applicable conditions.
These lawsuits were not entered into lightly. In fact, several students and faculty members monitored credit card solicitation activities on the campus for over a year before putting together the lawsuit.
Dann said the suit is being brought against the credit card companies on behalf of the state. With these charges, the state is looking to prohibit companies from being able to continue with these types of activities. The state is also looking to charge the companies a $25,000 penalty for every violation they made while also requiring the companies to maintain records of their credit card marketing practices and events for a period of three years.
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