November 12, 2009
Associate Gonzalo Mon was quoted in a Mobile Marketer article titled “Mobile Content Providers Settle Lawsuits that Claim Unauthorized Charges.”
Mr. Mon notes that “this class action is just one in a series of challenges brought by consumers and regulators alleging that companies failed to adequately disclose the costs associated with mobile content.” Mr. Mon explains “the key lesson here is that marketers need to clearly and conspicuously disclose the material terms – including costs – of their offers to consumers before they subscribe. If marketers don’t do this, consumers are likely to complain, and those complaints can quickly lead to lawsuits or regulatory investigations.”
Mr. Mon warns companies that “given that most settlements involving mobile marketing practices include payments upwards of $1 million, companies should make certain that they satisfy the applicable legal standards.”
Mr. Mon also points to a settlement between Verizon Wireless and the Florida Attorney General that was announced earlier this year as a case that provides marketers with some helpful guidance when preparing ads or offers.