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"Elite Club" Memberships

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karschnik

Junior Member
What is the name of your state (only U.S. law)? AZ

Our company wants to explore offering an "elite club" membership with our premier product. The membership will not be offered at an extended cost, rather rolled into the cost of the product. Club enrollment will be automatic when the product registration card is submitted.

I would like to understand what, if any, legal ramifications exist. I realize what we offer will effect our legal liability but I want know what the general pitfalls are with this type of program.

Any advice is greatly appreciated.
 


Zigner

Senior Member, Non-Attorney
What is the name of your state (only U.S. law)? AZ

Our company wants to explore offering an "elite club" membership with our premier product. The membership will not be offered at an extended cost, rather rolled into the cost of the product. Club enrollment will be automatic when the product registration card is submitted.

I would like to understand what, if any, legal ramifications exist. I realize what we offer will effect our legal liability but I want know what the general pitfalls are with this type of program.

Any advice is greatly appreciated.
Your question is overbroad and vague.
 

karschnik

Junior Member
Unfortunately, it is overbroad and vague because I am completely unfamiliar with the law governs the implied, or overt, benefits of "free" club memberships....or if they are governed at all. If our company proposes as part of the elite club membership consumers will receive preferential status when calling the technical support line (example). How would our company or the consumer validate "preferential" treatment is actually being given? If a customer felt they were not being given preferential treatment, would they have any legal method of recourse considering "preferential" is a pretty nebulous definition? That is one example.

Selling service agreements offering benefits above and beyond the standard warranty is governed differently state to state. My understanding is these agreements are subject to stringent legal guidelines (some states are more strigent) because the consumer pays for the agreement. With our "elite club" membership being "free" to those who purchase our premium product, I am not clear on any legal guidelines specifying how the benefits are measured or administered.

I am really just looking for some advice regarding where to begin researching this type of information. I have tried Google searches and have successfully found information on the plethora of "elite" clubs in existance, but no information regarding legal guidelines for structure or administration of club benefits.
 

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