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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?

#31
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…

This is their previous checkout page:

https://news.ycombinator.com/item?id=4592827

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

#32
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…

* The VIP membership program information is not part of the eye flow from the checkout info to the nice big bright attention grabbing checkout button.

* Nor does it immediately stand-out as "This is something you REALLY need to read" rather than just normal advertising for an opt-in premium package,

* There is no "I have read and accepted the VIP stuff" checkbox in the checkout flow. User has to specifically opt-out by clicking a link no-where near the standard user flow.

So, not fraudulent technically but this seems like a clear case of a "Dark Pattern" and seems pretty scammy to me.

>It's in plain English, and in the same font size as everything else on the page.

The actual text saying "With this purchase you are activating your VIP membership program" is clearly smaller than the main text in the checkout (product name, prices etc).

> and the information is quite clear on the site.

Your opinion, I have to disagree.

[Edit] having seen the old page linked to by another user http://i.imgur.com/3di93.png is it pretty clear that the new page is much more deceptive (Old one had a checkbox requiring acceptance of VIP membership)

[Edit] Expanded opinion.

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

#33
post #25

Their "how it works" page explains this, with far fewer than "2500 words", though it could be clearer. http://www.justfab.com/how-justfab-works.htm They have 2 million likes on Facebook. Were all these users scammed? The "monthly subscription" has recently been a hot e-commerce category. Other sites with a similar model are shoedazzle.com, fabkids.com, musthave.popsugar.com and so on. See: http://www.quora.com/E-Comm…

A quick count from these three websites showed several hundreds customers have fallen victims: http://www.sitejabber.com/reviews/www.justfab.com http://www.scambook.com/company/view/146/JustFabcom http://www.consumeraffairs.com/online/justfab.html If you google "justfab review" or "justfab scam" or "justfab fraud", there are surely many more.

You've posted this comment three times, and I won't reply on every thread, but let's be clear: these "review" sites are shady operations that extort retailers by aggregating negative reviews and charging to hide them.

Amazon's review is worse than JustFab's on the same site: http://www.consumeraffairs.com/online/amazon.html

You can Google a lot of e-commerce sites with the word "fraud" or "scam" and find a lot of negative stuff. This is the internet.

I don't dispute the fact that there are probably several hundred unhappy customers, as reported the site will do >$100M in revenue and everything costs $40 or less, with 2.5MM+ transactions, it's inevitable, but it's not indicative of a problem.

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

#34
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…

Generally when I see a list of items I am purchasing, a "continue to checkout" button, and a right sidebar that covers the full height of the checkout area, the right sidebar does not contain additional services that I am purchasing. I would, in fact, expect services that I am purchasing to appear in the same list as the items that I am purchasing! In this instance I looked at the right sidebar only because I was looking for the "obvious" indication of the subscription, and even then I had trouble finding the bit that told me that purchasing a single pair of boots would cause me to be signed up, because it is in a sub-header in one of the lowest-contrast parts of the sidebar.

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

#36
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…

Ok, it's not illegal as I look at it. But it still feels like shady business. People tend to focus on the checkout button and don't realy see the VIP-announcement because it looks like a kind of advertisment. People are therefore (at least in my opinion) tricked into a subscription. It's not a way of doing business I like.

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

#37
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'm sorry, but yes, that's a very tricky site.

There are about a bajillion ways to make it much more clear what you're actually paying for. Not even complicated, "Well we need to hire a UX designer and do some study" type stuff. Just straight-forward, common sense things like adding the price of the membership as a line item.

So, yes, you've invested in a company which is actively hostile to its customers.

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

#38
post #12

Earlier quoted context omitted.

I just went through it, on the buy page it says "To become a JustFab VIP Member, simply purchase any JustFab item on this Site and you will be automatically enrolled in the JustFab VIP Membership Program (including the monthly, automatic purchase feature). As a JustFab VIP Member, our experts will send you a customized selection of JustFab items on the 1st day of every month. You will also receive emails, newsletters…

You're looking for it. If you instead were simply looking to buy a pair of shoes you would not be expecting anything at all like that. And you'd probably miss it. It's important to note that the terms are not listed on the page where you enter your credit card information. They're listed on the "Shopping Bag" page which is 3 pages prior in the checkout process. There is nothing to fill out on the "Shopping Bag" page.…

yes. When I put my credit card in to an online site I say. "Do I trust these people not to steal my identity, to not over charge me, to send me what I ordered?" and only if all the answers are yes to I push "submit".

That's why I still have a roof over my head and money in my bank account, and there isn't some Nigerian Prince with a Mercedes purchased with my money.

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

#39
post #31
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…

This is their previous checkout page: https://news.ycombinator.com/item?id=4592827

The previous one seems less deceptive - it makes the user check a box that mentions the VIP program.

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

#40
post #3

Most of you are too young to remember, "Buy now and we'll send you CD's each month for just $9.95 per month, keep only the ones you want, cancel anytime" This is the same thing. It may feel scuzzy, but they do tell you this up front, and while they hope you forget, it isn't a scam, it is just preying on the uninformed.

If your business depends on people not reading things, then yes, your business is a scam.

And generally speaking, things which "feel scuzzy", are.

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