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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?

#341

Post by darkarmani »

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…

> Under "How VIP Membership Works", it explains: " If you do not take action between the 1st and the 5th of the month, you will be charged $39.95 for a member credit on the 6th. Each credit can be redeemed for 1 JustFab item, so use it to shop later!"

How much does the service cost that takes action automatically for you between the 1st and the 5th? Isn't this what computers are for to do things automatically for you?

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

#342

Post by DanBC »

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 just went to the site -- you can do this -- picked a random pair of boots and put them in my shopping cart. I then clicked checkout, and here is what that page looked like:

> (http://imagesup.net/?di=15138026329215)

> "I wonder how much of this $100 million are from people like my girlfriend who simply didn't read their entire 2,500 words Terms of Service and were unaware that they were charged $39.95 a month for nothing" -- Seriously, please look at the link above to the checkout flow and tell me that's how you see it, that you have to read the 2,500 word TOS to figure out that this is the case.

That screenshot looks pretty bad to me. I'd expect recurring charges to appear in the same bright pink colour, and in the same "sub total, total continue checkout" box, as the other charges.

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

#343

Post by aestra »

ghshephard wrote: post #228
abalone wrote: post #154

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…

Totally not the case that you get your money back, at least with WellsFargo Visa, they will investigate to determine whether your card was used by some other party. Saying, "I didn't read the terms of the agreement" is not grounds for a chargeback. What's worse is when you've signed up for a One year recurring payment and you have to jump through hoops to cancel such as a registered letter to cancel. Wells fargo will…

How can WellsFargo transfer a recurring charge to a new credit card? That makes no sense. How can they associate old card with new card? That means if there was fraud going on WellsFargo would have no way of stopping it ever.

It also sounds like you are talking about a debit card, and not a credit card, and it sounds like you gave a scammer your bank account number, not debit card number. Those are just guesses.

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

#344

Post by alan_cx »

mehwoot wrote: post #64

Because it's not technically illegal what they are doing and they're doing it successfully. If there are people who think it's ethically ok to run a website that way, then there are probably people who will invest in it. To me, it seems borderline.

When some thing is not technically illegal, but still fools consumers, it is a scam. Other wise, it would be illegal. The borderline, is exactly where scammers try to dance.

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

#345

Post by darkarmani »

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 is this any different than the Nigerian scam emails? It seems pretty clear that Nigerian scam emails are in fact a scam, so anyone "falling" for them are just agreeing to be scammed, just like JustFab.

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

#346

Post by kyllo »

jseliger wrote: post #331
ghshephard wrote: post #228

Earlier quoted context omitted.

Totally not the case that you get your money back, at least with WellsFargo Visa, they will investigate to determine whether your card was used by some other party. Saying, "I didn't read the terms of the agreement" is not grounds for a chargeback. What's worse is when you've signed up for a One year recurring payment and you have to jump through hoops to cancel such as a registered letter to cancel. Wells fargo will…

Wells fargo will refuse to cancel for you, saying it is between you and the vendor. Further to that, you can't even cancel your credit card, as Wells Fargo will transfer the recurring charge to a new card. That's not been my experience with AmEx. Some scammy company began billing me for monthly charges, and I couldn't get anywhere through the telephone number listed on the bill. I called AmEx, disputed the charges, a…

AmEx has a unique "no questions asked" chargeback policy. That's why people use AmEx cards despite that their interchange fees are higher, they aren't accepted everywhere, and they're harder to qualify for.

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

#347

Post by JaakkoP »

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…

Now I know I never need to go for Matrix Partners for anything, knowing they have people like this person working there.

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

#348

Post by aestra »

downandout wrote: post #178
halviti wrote: post #163

Earlier quoted context omitted.

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.

The window is usually 180 days, and some of the more lenient credit card companies will go back even further depending on the circumstances. She can easily get back 6 of the 8 monthly charges. A simple way to avoid issues like this is to always generate a virtual card for each purchase, and then turn the virtual card off the moment the transaction is completed. You can do this through Netspend prepaid cards - you jus…

Bank Of America has SafeShop for their cards.

https://www.bankofamerica.com/privacy/accounts-cards/shopsaf...

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

#349

Post by JPKab »

jdh wrote: post #33
wenxun wrote: post #25

Earlier quoted context omitted.

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 neg…

Question: Would you be opposed to a pop-up window which, when the user clicks the pink checkout button, comes onto the screen specifically explaining the subscription program?

I have no doubt it would hugely reduce JustFab's profits.

Dark patterns are bullshit, and your defense of this company is a classic case of cognitive dissonance at work. You don't consider yourself a bad person, so when confronted with obvious evidence of a company you invested in being a scamming piece of shit, you try to find a way to make the company not a scamming piece of shit. In your mind, this may be true. But the rest of us aren't sharing in your delusion.

The world is full of rich people with compromised morals. Please don't be one of them.

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

#350

Post by alan_cx »

cowls wrote: post #188
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 trying to defend this scam was a really bad idea.

I think it is interesting to see how an investors in such activities tried to justify themselves.
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