Monday, April 05, 2021

The Trump Con: excerpt from the NY Times

 Coffee Party USA

He's a con. What don't "we" get about that?
 
Excerpt:

In early September (2020) — just after learning that it had been outraised by the Biden operation in August by more than $150 million — the Trump campaign became even more aggressive.
 
It changed the language in the first yellow box to withdraw recurring donations every week instead of every month. Suddenly, some contributors were unwittingly making as many as half a dozen donations in 30 days: the intended contribution, the “money bomb” and four more weekly withdrawals.
 
“You don’t realize it until after everything is already in motion,” said Bruce Turner, 72, of Gilbert, Ariz., whose wife’s $1,000 donation in early October became $6,000 by Election Day. They were refunded $5,000 the week after the election, records show.
 
Around the same time, officials who fielded fraud claims at bank and credit card companies noticed a surge in complaints against the Trump campaign and WinRed.
 
“It started to go absolutely wild,” said one fraud investigator with Wells Fargo. “It just became a pattern,” said another at Capital One. A consumer representative for USAA, which primarily serves military families, recalled an older veteran who discovered repeated WinRed charges from donating to Mr. Trump only after calling to have his balance read to him by phone.
 
The unintended payments busted credit card limits. Some donors canceled their cards to avoid recurring payments. Others paid overdraft fees to their bank.
 
All the banking officials said they recalled only a negligible number of complaints against ActBlue, the Democratic donation platform, although there are online review sites that feature heated complaints about unwanted charges and customer service.
 
The Trump operation was not done modifying the yellow boxes. Soon, the fact that donations would be withdrawn weekly was taken out of boldface type, according to archived versions of the president’s website, and moved beneath other bold text.
As the campaign’s financial problems became increasingly acute, the yellow boxes became dizzyingly more complex.
 
By October there were sometimes nine lines of boldface text — with ALL-CAPS words sprinkled in — before the disclosure that there would be weekly withdrawals. As many as eight more lines of boldface text came before the second additional donation disclaimer.
Even political professionals fell prey to the boxes.
 
Jeff Kropf, the executive director of the Oregon Capitol Watch Foundation, a conservative group, said he had been “very careful” to uncheck recurring boxes — yet he missed the “money bomb” and got a second charge anyway.
 
“Until WinRed fixes their sneaky way of adding additional contributions to credit cards like they did to me, I won’t use them again,” he said.
 
Mr. Brignull, the user-experience designer who also serves as an expert witness in legal cases involving misleading advertising, noted that a Consumer Rights Directive in Europe prohibits companies from deploying a defaulted opt-in tactic for recurring payments.
“It is very easy for the eye to skip over,” he said. “The only really meaningful information in that box is buried.”
...
The Trump team repeatedly used phantom donation matches and faux deadlines to loosen donor wallets (“1000% offer: ACTIVATED…For the NEXT HOUR”). Eventually it ratcheted up the volume of emails it sent until it was barraging supporters with an average of 15 per day for all of October and November 2020.
...
The Trump and WinRed operations had been closely aligned since the platform’s inception — Mr. Trump reportedly helped come up with the firm’s name — and the president’s re-election operation amounted to a majority of all of WinRed’s business last cycle, when it processed more than $2 billion.
...
Unlike ActBlue, which is a nonprofit, WinRed is a for-profit company. It makes its money by taking 30 cents of every donation, plus 3.8 percent of the amount given. WinRed was paid more than $118 million from federal committees the last election cycle; even after paying credit card fees and expenses like payroll and rent, the profits are believed to be significant.
 
WinRed even made money off donations that were refunded by keeping the fees it charged on each transaction, a practice it said was standard in the industry, citing PayPal; ActBlue said it does not keep fees for refunded donations. WinRed’s cut of the Trump operation’s refunds would amount to roughly $5 million before expenses. (Archived versions of WinRed’s website show it added a disclaimer saying it would keep its fees around when refunds surged.)
 
There is another reason Mr. Trump’s refund rates were so high: His campaign accepted millions of dollars above the legal cap, a problem exacerbated by recurring donations. A pianist in New York, for instance, contributed more than 100 times in the months leading up to Election Day, going far past the legal limit of $2,800. She was refunded $87,716.50 — three weeks after Election Day.
 
While every large-scale campaign winds up accepting and returning some donations above the legal limit, including Mr. Biden’s, the Trump situation stands out. Records show that Mr. Biden’s campaign committee issued roughly $47,000 in refunds larger than $5,000 after Election Day; Mr. Trump’s campaign issued more than $7 million.
 
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