Source: The Verge
Summary
The FTC has filed a lawsuit against a group of subscription app operators, alleging they used shell companies and payment infrastructure to stay active on app stores despite numerous consumer complaints. The lawsuit claims the operators used deceptive tactics to enroll users in recurring payment plans, leading to millions of dollars in unauthorized charges. According to the FTC, the operators created shell companies to evade detection by app stores and payment processors.
Our Reading
The announcement sounds ambitious.
The FTC is taking on alleged subscription app scammers, who supposedly used shell companies and payment tricks to stay on app stores. They allegedly enrolled users in recurring payments without consent, racking up millions in unauthorized charges. This isn’t the first time we’ve seen this kind of “innovation” in the app world. Same song, different shell company.
Author: Evan Null
Shell Games in the App Store
The FTC’s lawsuit reveals a complex web of shell companies and payment infrastructure allegedly used by the subscription app operators. This is not the first time we’ve seen this kind of scheme, and it’s unclear how app stores will prevent it in the future.
Deceptive Tactics Alleged
According to the FTC, the operators used deceptive tactics to enroll users in recurring payment plans. This included hiding the true nature of the subscription and making it difficult for users to cancel.
Millions in Unauthorized Charges
The alleged scam resulted in millions of dollars in unauthorized charges. The FTC claims that the operators were able to evade detection by app stores and payment processors by using shell companies.
Same Song, Different Shell Company
This isn’t the first time we’ve seen this kind of “innovation” in the app world. It’s unclear what, if anything, will change as a result of this lawsuit.
App Store Accountability
The lawsuit raises questions about the responsibility of app stores to prevent this kind of scam. Will they take steps to prevent similar schemes in the future, or will it be business as usual?
