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…
Why can a scam company raise $40 Million Series C + $76 Million Series B?
31–40 of 480 posts
Re: Why can a scam company raise $40 Million Series C + $76 Million Series B?
#32I'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…
* 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?
#33Their "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.
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?
#34I'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…
Re: Why can a scam company raise $40 Million Series C + $76 Million Series B?
#35To me, trying to mislead people (on purpose) is equivalent to scamming. the purpose is the same, just a different method of doing thing.
Re: Why can a scam company raise $40 Million Series C + $76 Million Series B?
#36I'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…
Re: Why can a scam company raise $40 Million Series C + $76 Million Series B?
#37I'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…
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?
#38Earlier 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.…
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?
#39I'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?
#40Most 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.
And generally speaking, things which "feel scuzzy", are.