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

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

#201
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).

Prime is a membership. It even has it in the name! How is that the same level of misleading?

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

#202
post #42
post #29

Earlier quoted context omitted.

Not the OP - but I did take a look at that page, and I do find it misleading. The "checkout as a regular member" is in a small font on the sidebar, while the main CTA is big, bold and defaults to the VIP program. The part where you're told about the monthly fee is in the last sentence of the sidebar. I had to practically hunt it to find it - for most people shopping online this will be oblivious. By giving the screen…

I don't accept the word "misleading" -- I do not believe the page in any way misleads. It does not try to position it as anything other than a subscription, and the language is plain english. Could they put the subscription details in bold? Could they use a larger font than all the other text? Sure. It's a tradeoff, for sure, and every retailer has to optimize their site to perform. Could they pop up three boxes afte…

You may not accept the word misleading, but everyone who knows what that word means, does. The page definitely misleads. It does try to position it as something other than a subscription: it tries to position itself as a regular sale. The entire fact that it is a subscription is hidden at the bottom of the light-grey sidebar. The language may be in English, but it's still light grey at the bottom of the sidebar, and not anywhere near the actual purchase and pricing info that you're agreeing to.

"Are you sure?" popups don't provide any additional info. Explaining what you're signing up for does.

Those million subscribes with very low churn rates, are they actually ordering new shoes every month? Or are they people that haven't figured out they're still paying every month for that one pair of shoes that they liked? How do you know they're happy? Have you asked, or do you simply assume because they haven't sued you yet?

You're right that it's a tradeoff. It's a tradeoff between honesty and extra undeserved revenue.

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

#203
post #87

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…

Came to say this. I can smell class action against JustFab.

Actually, when you agree to the terms of service, you conveniently waive the right to participate in a class-action lawsuit.

Source: http://www.justfab.com/index.cfm?action=home.terms_and_condi...

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

#204
post #194

Earlier quoted context omitted.

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...

You are right, it's obviously not comparable to human trafficking.

I'm just making the point that this guy has a history of founding shady companies, therefore it's not surprising that he can't see why JustFab is a shady company.

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

#205
post #42

Earlier quoted context omitted.

I don't accept the word "misleading" -- I do not believe the page in any way misleads. It does not try to position it as anything other than a subscription, and the language is plain english. Could they put the subscription details in bold? Could they use a larger font than all the other text? Sure. It's a tradeoff, for sure, and every retailer has to optimize their site to perform. Could they pop up three boxes afte…

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…

I would not be surprised if German law forbids the buy-and-subscribe trick. I would LOVE to hear about the German profit's of this company.

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

#206
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 hope you, as an investor in this company, are also held (at least financially) liable for this scam.

Unfortunately, you're likely to greatly benefit from scamming so many people.

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

#207
The company's tactics have been thoroughly eviscerated here, as they should be. This is clearly misleading and I don't think I can add much there.

But, here's something else that I find funny: the membership fee is $39.95/month, which then entitles you to buy a pair of shoes for an additional $39.95/month. They state that this price is "up to 50% off". So, if you only buy one pair of shoes in a month, and the discount is anything less than 50% off, then you actually lose by being a VIP member.

And, even given the maximum discount of 50% off, you would have to buy at least two pairs of shoes each month to come out ahead vs. just breaking even.

I am sure that there are people who buy shoes at this rate, but I am willing to bet that many do not consider this in their calculus, and the company knows it. I would guess that many assume they are getting a deal, as long as they "use their memberships" and buy at least one pair of shoes each month. And, almost certainly, none of them think think they could actually lose as a VIP, so long as they make one purchase.

This is not as overtly deceptive as their site design, but it underscores that their primary business model relies upon their customers' lack of understanding in one way or another.

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

#208
post #151

Earlier quoted context omitted.

I'm not 100% sure but I think this site would not be allowed in Germany because of consumer protection laws. In that regard it's very telling that justfab.de has a very different checkout: http://imgur.com/uIZ5JX3

That looks better, but doesn't mention that the membership comes with a monthly fee. Pretty sure it is illegal in Germany. I think the law in Germany even states what kind of text is appropriate on the "buy now" button.

We can not know this from the screenshoot alone. The membership itself is mentioned.

Maybe the fee is mentioned on a other screen.

As far as i renember it is not really "illegal",but the contract is invalid.

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

#209

Earlier quoted context omitted.

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.

> The Office of fair trading would shut this site in a heart beat. (if it were based in the UK) They have a UK site: http://www.justfab.co.uk/

They have a Spanish site, too, and it's exactly the same as the US version - the same scam.

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

#210
post #130

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…

> When a user goes to checkout of any online store, they're not going to read everything on every page. It's a process they're very familiar with so they're going to skim and click through quickly. I know this, you know this, and JustFab knows this. This is the key point. If I know, you know, and JustFab know, then JustFab is without doubt acting in deceitful behavior. The act of deliberately portraying a subscriptio…

For adding to your argument, I have a VIP membership at Qatar Airways and it does not include a subscription. So as you say, one does not automatically means the other.
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