QuakerCard spurs controversy

When four Wharton seniors formed the University Student Services company and created the QuakerCard in the summer of 1996, they were accused of misleading numerous Penn freshmen and their parents into thinking that their debit card was University-affiliated. Nearly two years later, the company is again under fire, this time for causing similar confusion on a national level. Earlier this year, University Student Services created a subsidiary called the National College Registration Board, with the intent of marketing a new Campus Card, which company founder Matthew Levenson explained would take the QuakerCard concept to a national level. The popular QuakerCard allows Penn students to store money on the card, which can be used at various retail locations around campus and entitles cardholders to various discounts. The Campus Card, Levenson said in a statement, would also allow students to buy books on-line at a discount. While neither the QuakerCard nor any future Campus Card is affiliated with its respective university, the Princeton, N.J.-based unit told high school seniors in an April 8 mailing that the $25 card is "required" for students nationwide in order to receive discounts and services. The letter -- described by many college officials as misleading and deceptive -- may have led parents and students to believe that the debit card was something the student had to have, and that it was associated with the school. Colleges are subsequently warning students to be wary of the card. Laurie Cousart, Penn's director of campus card services, said students might think they have to purchase the card only to come to campus and find out they don't need it. A brochure enclosed in the company's mailing pictured a card with the University of Michigan logo on it, and the company's Web site showed the names of hundreds of nationwide colleges, a feature it was forced to take down. University of Michigan officials said they asked the campus police to investigate the unsanctioned use of its trademark. Attaching the school's trademark to the card, according to Rick Van Brimmer, president of the Association of Collegiate Licensing Administrators, "implies it originated from that entity." He added that he thinks Penn should take action to prevent University Student Services from using the Quaker name for its card, which he says further implies a misleading University association. "There were a very high level of people that were confused," Van Brimmer said, adding that numerous parents phoned Ohio State University, where he is a trademark official. A similar stream of calls to Penn occurred in 1996 when the QuakerCard was originally marketed. While the company's use of trademarks could be grounds for a licensing violation, Manuel Cunard, executive director of the National Association of College Auxiliary Services, pointed out that Levenson sent out a clarification on April 24 to several national organizations. In that letter, Levenson explained that Campus Card is an off-campus, private organization, not affiliated with school ID cards distributed at most universities, and is intended "to meet the financial and budgeting needs of college students and their families." Levenson also said in the letter that he would send similar information to the students. It was unclear yesterday if Levenson had done that. Levenson did not return repeated phone calls. Additionally, Levenson promised that any student who feels they purchased the card "without fully understanding the nature of the services offered" will receive a refund of their registration fee. Cunard said he thought there was "enough good intent" to preclude any legal action against the company for using unlicensed trademarks. But Cunard stressed that Levenson must present more accurate information in the future. The company is "hoping to end the confusion they created on the marketplace and move forward," said Henry Feintuch, managing partner for KCSA Worldwide, a New York City-based public relations and marketing firm which is representing Levenson. The confusion the company created was unintentional, he added. Several officials said that the card is good idea and would be beneficial to campuses. But they speculate that the misinformation Levenson presented may ultimately prevent him from getting his national project off the ground.