Nick, sadly that's not uncommon. There are a LOT of businesses (usually photo businesses for some reason) that are actually the same company located in the same office (sad to say, as a New Yorker, that they seem to be based out of NYC quite often), who pull these kinds of scams. I've fortunately never expereiced it, but I've read reviews of such places many times wher using those DigitalSaver type sites. Their complaints are almost identical to yours.
Nowdays I willingly pay a bit more for the assurance of a company that will engage in less shady business practices.
