Classic Closeouts retailer booted from TRUSTe program
Online retailer inappropriately handled unauthorized credit-card charges
Network World, 10/06/2008

Online retailer Classic Closeouts has been expelled from the TRUSTe consumer-protection program due to its inappropriate handling of unauthorized credit-card charges to customer accounts.

Hundreds of customers have complained to TRUSTe that Classic Closeouts made unauthorized credit-card charges, ranging from $30 to $80, to their accounts, says John Tomaszewski, vice president of legal guidance and privacy at TRUSTe, the organization which administers the privacy and consumer protection program.

New! Watch this Network World Webcast - Minimizing the Risk of Information Security Breaches: Best Practices for SOA Governance and Compliance - Live October 21“We spent a lot of time trying to solve the problem, ” Tomaszewski says. The issue first came to TRUSTe’s attention around June when hundreds of people contacted the organization with complaints about the online retailer.

The “TRUSTe” seal is displayed on hundreds of Web sites operated by online businesses that agree to abide by TRUSTe’s consumer privacy and protection guidelines, as well as pay an annual fee for monitoring adherence to them and letting TRUSTe act as an intermediary in any disputes that crop up.

Closeouts joined the TRUSTe program more than a year ago, Tomaszewski says. After customers complained about the unauthorized credit card charges, Classic Closeouts at first indicated to TRUSTe that a technical glitch related to an e-mail marketing campaign (possibly sent to as many at 700, 000 recipients) resulted in several hundred consumer credit cards being charged by Classic Closeouts.

“The company was having a hard time identifying who had been charged incorrectly, ” Tomaszewski says.

But as the months went by, TRUSTe determined that Classic Closeouts was not adequately resolving the problem. “They were not willing to be proactive and reimburse those cards. They were waiting for the customer to complain, ” he says.

In late September, TRUSTe took the step of revoking the online retailer’s right to display the TRUSTe seal and terminated the company from its consumer-protection program.

The Classic Closeouts Web site displays little information about the firm, and has not returned calls placed by Network World.

Fran Maier, CEO of TRUSTe, called the program termination of Classic Closeouts a very unusual step. There are about 2, 400 merchants in the TRUSTe consumer privacy and protection program, she says, and while consumer complaints do crop up, the TRUSTe arbitration process is generally effective in resolving disputes with a merchant.

For three months in a row, my credit card statement showed unauthorized charges from this company. My credit card company disputed the charges, but now I have to get a new card, because the charges keep coming. I bought from this company once 4 years ago.

I can't believe this company is still doing this. submit a complaint to this site.





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I checked my Amex statements today and found two fraudulent charges from this company. One was on 7/08/08 for $69.99 and another one on 7/30/08 for $49.99. I have disputed both charges with my credit card company. I ordered from this outfit a LONG LONG time ago (at least 3 or 4 years) and was unimpressed with the clothing and haven't re-ordered since. The fact that they still have my credit information on file makes me a bit crazy.

Argh!!!

I made a purchase with Classic Closeouts on July 3, 08. I returned part of the purchase and it was received the following week with no problems. I have since sent two emails requesting information as to when I will receive my refund and have gotten no response at all. The only number I could find on the internet for Classic Closeout (which is not even listed on their site), is no longer in service. I am angry with their lack of communication and total disregard for their customers. Not to mention the fact that they have stolen money from me. I have proof that they received the returned merchandise, and they have not returned my money. Had I realized how many bad reviews this site has before I made my purchase, I never would have done business with them. It is unfortunate. Now I am one of many who are very disgruntled to say the least.