| Type | Private company |
|---|---|
| Genre | Bargain Hunting Website |
| Founded | December 5, 1999 |
| Founder(s) | Tim Storm |
| Headquarters | Beloit, Wisconsin, USA |
| Revenue | 12.3 million (2009) [1] |
| Employees | 54 (2010) [2] |
| Website | fatwallet.com |
FatWallet is a bargain hunting website, centering around a set of forums that allow users to publish deals and rebate offers on a comprehensive range of products and services, though computer-related products and electronics are most prominent in the listings. It is headquartered in Beloit, Wisconsin.
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FatWallet features a Coupons and Cash Back rebate shopping section, where users can find thousands of money-saving coupons and discounts from hundreds of popular online retailers and members can receive a percentage of purchases back from purchases made through referral links to partnered retailers (originally known as FatCash). FatWallet has paid out over $28 million to its members since 2005 (membership is free with an email address).
FatWallet users frequently post the sale prices of major retailers before they were even released in the retailers' advertisements, which embroiled the site in a major legal dispute in 2002 involving Black Friday advertisements. Several retailers, including Wal-Mart, Target, Best Buy and Staples, have served FatWallet with "take-down" notices pursuant to the Digital Millennium Copyright Act, claiming that their sale prices were copyrighted and must be removed from its site. In addition, Wal-Mart served FatWallet with a subpoena to reveal the identity of the users that had posted Wal-Mart's prices, but the demand was quickly dropped. It is not known if Wal-Mart ever made good on its threats to sue.[1][2]
Though FatWallet initially complied with the take-down notices due to the fear of liability, within two weeks it took the offensive, reposting the prices and arguing that the prices were uncopyrightable facts rather than expression. FatWallet filed a lawsuit in the U.S. District Court for the Northern District of Illinois against three of the retailers, seeking damages for their knowing assertion of invalid copyright claims and a declaratory judgment that the take-down provisions of the DMCA were unconstitutional. The case, FatWallet, Inc. v. Best Buy Enterprise Services, Inc., was dismissed. The court ruled that FatWallet lacked standing to sue for any harm done to its users for having their postings temporarily removed, and FatWallet did not assert any injury to itself that the court found cognizable. Apparently, FatWallet executives welcome another opportunity to settle the U.S. laws surrounding dissemination of advertising information, and are confident that threats by retailers are bluff and bluster.[2]
Since its launch, FatWallet has expanded its forums to include discussion on other financial topics such as investments, banking and credit cards. The Finance forum is often mentioned in the Wall Street Journal and the New York Times referencing personal finance topics ranging from credit card topics to 401K investment tips.
FatWallet launched Best Deals in 2009 (initially called Today's Top Deals) which features dozens of researched deals found all over the internet by deal hunting staff and members. Best Deals also features an Expert Picks section where deal hunting experts research bigger ticket retail products like laptops, computers and HDTVs for the best value for the price and post their endorsements each week.
Compare Prices was launched in June 2010 as a price comparison that includes cash back, shipping costs and taxes.
Between March and April 2011, Fatwallet moved to Wisconsin from its home in northern Illinois in order to avoid termination of affiliate contracts with online retailers such as Amazon.com that provide about 30% of the companies revenue. An Illinois law passed in March 2011, the Main Street Fairness Act, required online retailers with Illinois affiliates to collect and remit sales taxes to the state.[3]
Other notable company achievements include FatWallet being named one of 2010's 50 Best Places To Work in America by the Best Places To Work Institute and Entrepreneur Magazine. FatWallet ranks #20 on the list for best small businesses. Founder Tim Storm was also named as one of four finalists for Entrepreneur of 2010 by Entrepreneur.com. The winner of this prestigious national award will be announced in January 2011.