FTC Targets 'free' Trial Offers From Canadian Entrepreneur - GoFuckYourself.com

Agent 488 · 05-18-2011, 03:36 PM

http://www.pcworld.com/businesscente...p reneur.html

The U.S. Federal Trade Commission has filed a lawsuit against a Canadian entrepreneur and a group of Web-based businesses that promised customers free offers, but allegedly raked in more than US$450 million by then charging for products and services they did not purchase.

The 10 Web businesses, controlled by 24-year-old entrepreneur Jesse Willms, touted free trials or risk-free offers on several products, including acai berry weight-loss pills, teeth whiteners, health supplements, work-at-home opportunities, access to government grants, free credit reports and penny auctions, the FTC said in a press release.

Customers in the U.S., U.K., Canada, Australia and New Zealand were lured in by the free trial offers, the FTC said.

Willms and his companies obtained consumers' credit or debit card account numbers through the promise of free or risk-free trial offers, the FTC said. Customers had "no reason to believe" they would be charged for the trial product or extra bonus products, but they were often charged for the supposedly free trial, plus a monthly recurring fee, typically $79.95, the FTC said.

"The defendants used the lure of a 'free' offer to open an illegal pipeline to consumers' credit card and bank accounts," David Vladeck, director of the FTC's Bureau of Consumer Protection, said in a statement. "'Free' must really mean 'free' no matter where the offer is made."

Willms and other defendants in the case allegedly contracted with affiliate marketers that used banner ads, pop-ups, sponsored search terms and unsolicited e-mail to lead consumers to the defendants' websites. The defendants "buried" important terms and conditions in fine print, the FTC alleged.

The defendants' penny auction offers promised free bonus bids, but customers were hit with unexpected charges, including $150 for introductory bonus bids and $11.95 a month for ongoing bonus bids, the FTC alleged. Willms and his companies also made false weight loss and cancer cure claims for their products, the agency alleged in its complaint, filed Monday in U.S. District Court for the Western District of Washington.

Willms, who writes about his charitable contributions and online ethics on various blogs, did not immediately respond to a message seeking comment on the FTC charges. In one September blog post, Willms talks about companies that make false claims online.

"I know it's tempting to make false or borderline claims," the blog said. "We get excited about products and services and want to yell from the rooftops about how great they are. But, you need to keep it realistic."

Repeat business is the "bread and butter" of the Internet marketing industry, the blog added. "So, be an Internet good guy and don't make any false claims," the blog said. "Just tell it like is -- and you'll profit from the experience."

In another blog post, Willms wrote that he never uses the word "free" to promote products because customers will assume the free products are worthless.

The FTC alleged that the defendants provided banks with false or misleading information, in order to acquire and maintain credit and debit card processing services from the banks in the face of mounting charge-back rates and consumer complaints. Willms and his companies also allegedly violated the Electronic Fund Transfer Act and other U.S. regulations by debiting consumers' bank accounts without their signed, written consent and without providing consumers with a copy of the written authorization.

The FTC worked with Canadian law enforcement agencies to bring the complaint, the agency said.

Socks · 05-18-2011, 03:39 PM

Jakez · 05-18-2011, 03:42 PM

Does this mean sponsors need to stop offering FREE trials with cc age verification?

alias · 05-18-2011, 03:44 PM

The more carders that drop the more we all can make with legit offers.

directfiesta · 05-18-2011, 03:51 PM

Under which nick does he post here ????

L-Pink · 05-18-2011, 03:55 PM

Quote:

Originally Posted by alias

The more carders that drop the more we all can make with legit offers.

And the more skeptical everyone becomes when it's time to get out the credit card.

alias · 05-18-2011, 03:56 PM

They will get over it once the rape stops.

TheDoc · 05-18-2011, 03:57 PM

$450 million in fraud transactions... holy crap!

L-Pink · 05-18-2011, 03:57 PM

$450 million and he will get less time than if he robbed a liquor store.

Supz · 05-18-2011, 03:58 PM

Quote:

Originally Posted by Jakez

Does this mean sponsors need to stop offering FREE trials with cc age verification?

no, they need to stop banging the cards on free trial signups.

Jakez · 05-18-2011, 04:00 PM

Quote:

Originally Posted by Supz

no, they need to stop banging the cards on free trial signups.

I'm talking about the legit sponsors that offer free joins with a cc to verify age, and of course the fine print says it will start billing eventually. I don't see any scams there..

BlackCrayon · 05-18-2011, 04:04 PM

Quote:

Originally Posted by L-Pink

$450 million and he will get less time than if he robbed a liquor store.

too true, sadly.

Agent 488 · 05-18-2011, 04:04 PM

read on another board they have 2-5 more gangs in their sites as well.

Agent 488 · 05-18-2011, 04:06 PM

Quote:

Originally Posted by L-Pink

$450 million and he will get less time than if he robbed a liquor store.

maybe. maybe not:

http://en.wikipedia.org/wiki/Enzyte#...and_sentencing

blackmonsters · 05-18-2011, 04:14 PM

Quote:

Originally Posted by Jakez

I'm talking about the legit sponsors that offer free joins with a cc to verify age, and of course the fine print says it will start billing eventually. I don't see any scams there..

I avoid that stuff like the plague.

Agent 488 · 05-18-2011, 04:19 PM

Quote:

Originally Posted by Jakez

I'm talking about the legit sponsors that offer free joins with a cc to verify age, and of course the fine print says it will start billing eventually. I don't see any scams there..

like who? that's what these guys were doing. and since affiliates are increasingly coming under the gun for aiding credit card raping companies it's best just to stay away.

L-Pink · 05-18-2011, 04:22 PM

Quote:

Originally Posted by Agent 488

maybe. maybe not:

http://en.wikipedia.org/wiki/Enzyte#...and_sentencing

Hey that was an interesting read

alias · 05-18-2011, 04:28 PM

Clean joins and cancels mean more long term money for everyone, these scam sites are finally on their last legs.

will76 · 05-18-2011, 05:11 PM

Quote:

Originally Posted by Jakez

Does this mean sponsors need to stop offering FREE trials with cc age verification?

no it basically means they need to stop fucking the customers or they might actually get held accountable.

Jakez · 05-18-2011, 07:29 PM

So you're saying a site offering a free TRIAL with CC that says it will rebill at $X is fucking the customer? Or you are just talking about the ones banging cards..?

Agent 488 · 05-18-2011, 07:31 PM

Quote:

Originally Posted by Jakez

So you're saying a site offering a free TRIAL with CC that says it will rebill at $X is fucking the customer? Or you are just talking about the ones banging cards..?

http://www.ftc.gov/opa/2011/05/jessewillms.shtm

L-Pink · 05-18-2011, 07:34 PM

Makes you wonder ... if this kid would have stopped after 10-20 million and faded away.

Agent 488 · 05-18-2011, 07:34 PM

also http://www.ftc.gov/os/caselist/10230...willmscmpt.pdf

Agent 488 · 05-18-2011, 07:38 PM

Quote:

Originally Posted by L-Pink

Makes you wonder ... if this kid would have stopped after 10-20 million and faded away.

this is from last year:

http://www.ctv.ca/CTVNews/WFive/2010...ietman_100320/

seems like the ftc takes a long time to investigate and build their cases. some of the stuff mentioned he was doing years ago.

alias · 05-18-2011, 07:41 PM

Yeah, thats how the feds work.

mafia_man · 05-18-2011, 07:47 PM

Quote:

Originally Posted by L-Pink

Makes you wonder ... if this kid would have stopped after 10-20 million and faded away.

Sure there's a lot stashed away for when he gets out.

Agent 488 · 05-19-2011, 11:37 AM

have no idea why this guy would stay in canada if he was doing this card banging fraud. you think he would hide out in philippines or florida.

L-Pink · 05-19-2011, 11:59 AM

Quote:

Originally Posted by Agent 488

have no idea why this guy would stay in canada if he was doing this card banging fraud. you think he would hide out in philippines or florida.

They all end up here for some reason.

.

marketsmart · 05-19-2011, 12:17 PM

Quote:

Originally Posted by Agent 488

have no idea why this guy would stay in canada if he was doing this card banging fraud. you think he would hide out in philippines

too many fraudsters on that island already.. not enough room..

i am willing to bet that he had some help from the west when it came to processing accounts..

.

JFK · 05-19-2011, 01:42 PM

Quote:

Originally Posted by directfiesta

Under which nick does he post here ????

05-18-2011, 03:36 PM	#1
Agent 488 Registered User Industry Role: Join Date: Feb 2006 Posts: 22,511	FTC Targets 'free' Trial Offers From Canadian Entrepreneur http://www.pcworld.com/businesscente...p reneur.html The U.S. Federal Trade Commission has filed a lawsuit against a Canadian entrepreneur and a group of Web-based businesses that promised customers free offers, but allegedly raked in more than US$450 million by then charging for products and services they did not purchase. The 10 Web businesses, controlled by 24-year-old entrepreneur Jesse Willms, touted free trials or risk-free offers on several products, including acai berry weight-loss pills, teeth whiteners, health supplements, work-at-home opportunities, access to government grants, free credit reports and penny auctions, the FTC said in a press release. Customers in the U.S., U.K., Canada, Australia and New Zealand were lured in by the free trial offers, the FTC said. Willms and his companies obtained consumers' credit or debit card account numbers through the promise of free or risk-free trial offers, the FTC said. Customers had "no reason to believe" they would be charged for the trial product or extra bonus products, but they were often charged for the supposedly free trial, plus a monthly recurring fee, typically $79.95, the FTC said. "The defendants used the lure of a 'free' offer to open an illegal pipeline to consumers' credit card and bank accounts," David Vladeck, director of the FTC's Bureau of Consumer Protection, said in a statement. "'Free' must really mean 'free' no matter where the offer is made." Willms and other defendants in the case allegedly contracted with affiliate marketers that used banner ads, pop-ups, sponsored search terms and unsolicited e-mail to lead consumers to the defendants' websites. The defendants "buried" important terms and conditions in fine print, the FTC alleged. The defendants' penny auction offers promised free bonus bids, but customers were hit with unexpected charges, including $150 for introductory bonus bids and $11.95 a month for ongoing bonus bids, the FTC alleged. Willms and his companies also made false weight loss and cancer cure claims for their products, the agency alleged in its complaint, filed Monday in U.S. District Court for the Western District of Washington. Willms, who writes about his charitable contributions and online ethics on various blogs, did not immediately respond to a message seeking comment on the FTC charges. In one September blog post, Willms talks about companies that make false claims online. "I know it's tempting to make false or borderline claims," the blog said. "We get excited about products and services and want to yell from the rooftops about how great they are. But, you need to keep it realistic." Repeat business is the "bread and butter" of the Internet marketing industry, the blog added. "So, be an Internet good guy and don't make any false claims," the blog said. "Just tell it like is -- and you'll profit from the experience." In another blog post, Willms wrote that he never uses the word "free" to promote products because customers will assume the free products are worthless. The FTC alleged that the defendants provided banks with false or misleading information, in order to acquire and maintain credit and debit card processing services from the banks in the face of mounting charge-back rates and consumer complaints. Willms and his companies also allegedly violated the Electronic Fund Transfer Act and other U.S. regulations by debiting consumers' bank accounts without their signed, written consent and without providing consumers with a copy of the written authorization. The FTC worked with Canadian law enforcement agencies to bring the complaint, the agency said.

05-18-2011, 03:42 PM	#3
Jakez Confirmed User Industry Role: Join Date: Jan 2004 Location: oddfuturewolfgangkillthemall!!!!!!! Posts: 5,656	Does this mean sponsors need to stop offering FREE trials with cc age verification? __________________ [email protected] - jakezdumb - 573689400 Killuminati

05-18-2011, 03:44 PM	#4
alias aliasx Join Date: Apr 2001 Posts: 19,010	The more carders that drop the more we all can make with legit offers. __________________ https://porncorporation.com

05-18-2011, 03:51 PM	#5
directfiesta Too lazy to set a custom title Industry Role: Join Date: Oct 2002 Location: Punta Cana, DR Posts: 29,589	Under which nick does he post here ???? __________________ I know that Asspimple is stoopid ... As he says, it is a FACT ! But I can't figure out how he can breathe or type , at the same time ....

05-18-2011, 03:56 PM	#7
alias aliasx Join Date: Apr 2001 Posts: 19,010	They will get over it once the rape stops. __________________ https://porncorporation.com

05-18-2011, 03:39 PM	#2
Socks Confirmed User Industry Role: Join Date: May 2002 Location: Toronto Posts: 8,475

05-18-2011, 03:57 PM	#8
TheDoc Too lazy to set a custom title Industry Role: Join Date: Jul 2001 Location: Currently Incognito Posts: 13,827	$450 million in fraud transactions... holy crap! __________________ ~TheDoc - ICQ7765825 It's all disambiguation

05-18-2011, 03:57 PM	#9
L-Pink working on my tan Industry Role: Join Date: Mar 2005 Location: Florida/Kentucky Posts: 39,151	$450 million and he will get less time than if he robbed a liquor store.

05-18-2011, 04:04 PM	#13
Agent 488 Registered User Industry Role: Join Date: Feb 2006 Posts: 22,511	read on another board they have 2-5 more gangs in their sites as well.

05-18-2011, 04:28 PM	#18
alias aliasx Join Date: Apr 2001 Posts: 19,010	Clean joins and cancels mean more long term money for everyone, these scam sites are finally on their last legs. __________________ https://porncorporation.com

05-18-2011, 07:29 PM	#20
Jakez Confirmed User Industry Role: Join Date: Jan 2004 Location: oddfuturewolfgangkillthemall!!!!!!! Posts: 5,656	So you're saying a site offering a free TRIAL with CC that says it will rebill at $X is fucking the customer? Or you are just talking about the ones banging cards..? __________________ [email protected] - jakezdumb - 573689400 Killuminati

05-18-2011, 07:34 PM	#22
L-Pink working on my tan Industry Role: Join Date: Mar 2005 Location: Florida/Kentucky Posts: 39,151	Makes you wonder ... if this kid would have stopped after 10-20 million and faded away.

05-18-2011, 07:41 PM	#25
alias aliasx Join Date: Apr 2001 Posts: 19,010	Yeah, thats how the feds work. __________________ https://porncorporation.com

05-19-2011, 11:37 AM	#27
Agent 488 Registered User Industry Role: Join Date: Feb 2006 Posts: 22,511	have no idea why this guy would stay in canada if he was doing this card banging fraud. you think he would hide out in philippines or florida.