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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?

#311

Post by jerguismi »

cs702 wrote: post #278

JustFab is not a 'scam company' (in the sense that they may not be doing anything technically illegal), but they are using DARK DESIGN PATTERNS[1] to trick at least some people into doing things they don't want to do. The checkout page[2], in particular, seems designed specifically to trick people into signing up for recurring monthly charges. Any person who adds merchandise to the cart and then clicks the big 'Conti…

Nah, it is a scam company as this type of activity is considered fraudulent in any sane country. Please edit your post accordingly.

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

#312

Post by calinet6 »

po wrote: post #232
abalone wrote: post #177

Earlier quoted context omitted.

Pardon my french HN, but what a load of horseshit. When I was a kid there was this mail-order thing called Columbia House Record Club. It was the same business model. They entice you with super cheap music.. if you signed up for a monthly subscription. I was a happy customer. Because I was smart enough to work the system, cancel in time and get a bunch of free CDs for pennies. But guess what? Somebody was filling the…

It may have been shady but even 8 year olds could tell that it was a 'club' and not a 'store' and knew that you had to cancel. It was "Join the club and get 8 CD's for free' not the other way around with small print. People just forgot to cancel or would stick with it for a while and then realize they weren't getting value. This is a different thing because it is intentionally masquerading as an online web store. Eve…

Yes, you're right—Colombia House was less scammy and more reputable than Justfab. They're lower than pond scum.

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

#313

Post by photorized »

jdh wrote: 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…

How can you compare this company with Netflix? Netflix is advertised as a subscription service, and there are no hidden charges.

Your company's business model is based almost entirely by hiding charges.

The fact that you successfully tricked a million people does not make it Okay.

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

#314

Post by [deleted] »

imsofuture wrote: post #286
cs702 wrote: post #278

JustFab is not a 'scam company' (in the sense that they may not be doing anything technically illegal), but they are using DARK DESIGN PATTERNS[1] to trick at least some people into doing things they don't want to do. The checkout page[2], in particular, seems designed specifically to trick people into signing up for recurring monthly charges. Any person who adds merchandise to the cart and then clicks the big 'Conti…

Let's not whitewash it though. That's a scam.

[deleted]

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

#315

Post by revelation »

bowlofpetunias wrote: post #302
cs702 wrote: post #278

JustFab is not a 'scam company' (in the sense that they may not be doing anything technically illegal), but they are using DARK DESIGN PATTERNS[1] to trick at least some people into doing things they don't want to do. The checkout page[2], in particular, seems designed specifically to trick people into signing up for recurring monthly charges. Any person who adds merchandise to the cart and then clicks the big 'Conti…

What they are doing in fact is illegal in most countries with strong consumer protection. Explicit and informed consent is not something judges and regulators take lightly. And since they apparently operate in Germany, France and Spain, I strongly suspect they are breaking the law in one if not all of those countries.

A law has actually been passed in Germany to curtail these 'subscription services':

https://blog.avast.com/2012/04/17/here-comes-the-zahlungspfl...

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

#316

Post by [deleted] »

jdh wrote: 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…

[deleted]

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

#317

Post by [deleted] »

drakaal wrote: 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.

[deleted]

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

#318

Post by photorized »

abalone wrote: post #177
jdh wrote: 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…

Pardon my french HN, but what a load of horseshit. When I was a kid there was this mail-order thing called Columbia House Record Club. It was the same business model. They entice you with super cheap music.. if you signed up for a monthly subscription. I was a happy customer. Because I was smart enough to work the system, cancel in time and get a bunch of free CDs for pennies. But guess what? Somebody was filling the…

However, Columbia House was specifically advertised as a "club". It was even part of their name!

This JustFab business is much, much worse.

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

#319

Post by mariusz331 »

jdh wrote: 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 think you know what you're saying here is wrong and that JustFab is intentionally misleading.

However, one must admire how committed you are as an investor to go down hard with this sinking ship.

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

#320

Post by alan_cx »

cs702 wrote: post #278

JustFab is not a 'scam company' (in the sense that they may not be doing anything technically illegal), but they are using DARK DESIGN PATTERNS[1] to trick at least some people into doing things they don't want to do. The checkout page[2], in particular, seems designed specifically to trick people into signing up for recurring monthly charges. Any person who adds merchandise to the cart and then clicks the big 'Conti…

You just perfectly described a scam.
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