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Why can a scam company raise $40 Million Series C + $76 Million Series B?

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191–200 of 480 posts

Re: Why can a scam company raise $40 Million Series C + $76 Million Series B?

#191
I think it's a scam, however I'd like to point out that by virtue of being honest, it could be avoided. If you are honest, you'll think "this is too good to be true", and rather than thinking "ha ha, fools, they'll make a minus on this and I get cheap shoes" you'll look closely for a catch.

That's not an excuse for the company at all, of course.

Re: Why can a scam company raise $40 Million Series C + $76 Million Series B?

#192

Every single person who has been misled into signing up for a recurring charge should do this one thing: Dispute the charge with their credit card company. You'll get your money back and it will issue a bunch of chargebacks to JustFab, which will penalize them financially. If enough people complain their penalties will escalate and their credit card processing rates will go through the roof. This is how the credit ca…

Except for there is a time window for these sorts of things. His girlfriend isn't going to be able to dispute charges that are 8-months old.

Well, in my country the credit card company's police on time window isn't very relevant. If there is a scam involved, it becomes a legal matter and for that the time window is years.

Re: Why can a scam company raise $40 Million Series C + $76 Million Series B?

#193
post #121

What worries me is that the what is probably one of the major credit check agencies in the UK and some other countries is also running business the same way. Experian offers a service where you can check your own credit score online for around £6, but actually also signs you up for a £13/month service after that which is also easy to miss in the small print. You also can't cancel this online, you have to phone them.…

The law should be:

Where reasonable you should be able to cancel by the same method as you signed up.

E.G. if you can sign up on a website, you should be able to cancel on the same website.

Re: Why can a scam company raise $40 Million Series C + $76 Million Series B?

#194
post #23

I'm the Series A investor in this company. We in fact have done plenty of due diligence, and you will be pleased to know it is not a scam company. In fact, the company has very high customer satisfaction ratings, including an NPS that is in the ballpark of Amazon, and a very high customer retention rate. More than half of the people who subscribe to the service are still subscribers after two years, which is unusuall…

I usually don't do this but I hope you'll do some time in prison for this scam. You can do mental gymnastics all day long if you want to, but it'll be hard to find anyone that doesn't think that what you are doing is malicious fraud. Edit: I see you are the founder of eHow (content farm) and Betfair (gambling). It doesn't surprise me at all. Maybe next time you could invest in human trafficking and brothels.

For what it's worth, eHow only really moved towards being a content farm after being sold to Demand Media. I don't think it's fair to compare legalised gambling with human trafficking...

Re: Why can a scam company raise $40 Million Series C + $76 Million Series B?

#195

Earlier quoted context omitted.

The other commenters are being too nice in their replies. You're full of shit. JustFab is a shoe of the month club masquerading as a normal online shoe store. The VIP Membership Program is the essence of JustFab's business model and yet it's missing entirely from the home page of their site. It looks like any other shoe store. And yet you think it's clear that the user is being signed up for a shoe of the month membe…

Absolutely agree with this comment. Here's the impression that I see at a "first glance" that page: 1.) The item to purchase, along with the price of the item. 2.) A bright magenta "Continue Checkout" button. 3.) An ad for an upsell on the right hand side which I'm generally not interested in. (on the right side, light grey text, etc) Only after carefully scanning the page do I notice the following: 3.) This isn't an…

Yeah, I'm incredulous that anyone could argue that VIP membership is obvious. There's a box that gives you the breakdown of the charges, Subtotal, Shipping etc. that doesn't include the VIP membership... In fact the only indication on the entire page that you're joining the VIP scheme is the magenta link you mentioned. It's smuggled through at the bottom of an ad box(where everyone applies a degree of visual filtering automatically) and the copy isn't exactly obvious. "No thanks, I don't want to save up to 50%" is a long way from "No thanks, I don't want to be a VIP".

Re: Why can a scam company raise $40 Million Series C + $76 Million Series B?

#196
post #131

Earlier quoted context omitted.

You shouldn't have been downvoted here, but the mob has been angered! I'd encourage you to ignore the insults and consider carefully the other feedback - there are some good points made here by people coming to the pages for the first time. Re your point above, What they could do which is very simple is to change the button text to 'Subscribe'. If you'd be reluctant to do that, ask yourself why that is? Why can't you…

The German site is a nice example how it should be done! Kudos!

They would never get away with the style of their English site in Germany. Honestly, I doubt they will get away in the US in the long run.

Re: Why can a scam company raise $40 Million Series C + $76 Million Series B?

#197
post #23

I'm the Series A investor in this company. We in fact have done plenty of due diligence, and you will be pleased to know it is not a scam company. In fact, the company has very high customer satisfaction ratings, including an NPS that is in the ballpark of Amazon, and a very high customer retention rate. More than half of the people who subscribe to the service are still subscribers after two years, which is unusuall…

Put it this way, from the evidence I've seen, and the checkout screen that is attached further down, This website is illegal in the UK The Office of fair trading would shut this site in a heart beat. (if it were based in the UK) the checkout proccess is deliberately misleading, it implies that clicking checkout will by the shoes and nothing else.

I don't think you've ever tried dealing with the OFT.

Glacial would imply an excess of speed and action on their part.

Scam companies regularly set up, flout the legislation and the OFT 'guidelines' (which is what they are so a breach needs to be investigated before it can become subject to enforcement - more delay) and keep going until the OFT eventually acts then collapse to run off with the money.

Normally local trading standards units are much quicker at taking action but have limited powers and some things are reserved for OFT (see Glacial, above).

It has taken years of complaints to the OFT about mobile phone companies hiking 'fixed price' contracts mid-term for any investigation to be done (small print says 'fixed price' is index linked to whatever index they choose to apply an increase with). The investigation is still ongoing and although there is talk of action, it's not actualy happened yet, despite this being one of the most significant causes of complaints about mobile phone contracts for many years. [http://www.bbc.co.uk/programmes/b006mg74/features/mobile-con...]

Action on a scam site doing auto-subscribe ? I wouldn't hold my breath regardless of whether it is legal or not.

Re: Why can a scam company raise $40 Million Series C + $76 Million Series B?

#198
post #23

I'm the Series A investor in this company. We in fact have done plenty of due diligence, and you will be pleased to know it is not a scam company. In fact, the company has very high customer satisfaction ratings, including an NPS that is in the ballpark of Amazon, and a very high customer retention rate. More than half of the people who subscribe to the service are still subscribers after two years, which is unusuall…

> We in fact have done plenty of due diligence, and you will be pleased to know it is not a scam company.

I'm sorry, but the second half of your sentence does not follow from the first.

Your due diligence as an investor in no way reassures users that they are not being scammed. For instance the very "dark patterns" that Justfab seems to be relying on (https://news.ycombinator.com/item?id=6455927) might look great to you as an investor focused on increasing revenue and profits, but are designed to trick users.

That said, kudos for jumping in to defend your investee!

Re: Why can a scam company raise $40 Million Series C + $76 Million Series B?

#199
post #174

Earlier quoted context omitted.

from your HN profile > founder of Betfair (UK based, IPO) and eHow "betfair" is an oxymoron, a fair betting company is a betting company that does not stay in business long "eHow" is the pioneer of the "content farm" business "justfab" fits quite nice into this portfolio

Did his reference to Betfair and eHow just disappear?

still there: https://news.ycombinator.com/user?id=jdh

screenshot: http://www.dropmocks.com/mBw5GS

Re: Why can a scam company raise $40 Million Series C + $76 Million Series B?

#200
post #152

Amazon do basically the same thing with their prime membership, although they do refund if you notice and complain early enough (offer a free month and then start charging unless you opt out, whilst making it far from obvious that you have to do so).

Amazon explicitly says it's a paid program that costs money and you have to explicitly join it through process separate from buying stuff. Offering free trial period and then charging is very standard approach, automatically enrolling with sale is not.
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