August 31, 2010
In a Mobile Marketer article titled “Lessons Learned from the $10M Mobile Content Lawsuit Settlement,” partner Gonzalo E. Mon was quoted. The article discussed a group of mobile content service providers that have agreed to settle a number of class action lawsuits against them, involving claims that these companies charged wireless subscribers for mobile content without authorization.
In this case, it appears that consumers complained that they were billed for content they had not purchased, or at least did not realize they had purchased. “In the typical scenario, consumers are enticed by ads that prominently offer free content, but costs associated with that content are relegated to the fine print,” Mr. Mon explained. Mr. Mon gave a point of advice for mobile content service providers, which is to make sure that costs are clearly and conspicuously disclosed so that consumers know what they are obligated to pay.
“This could be the largest settlement over mobile marketing practices and demonstrates that there can be a high cost associated with failing to comply with legal requirements and best practice guidelines,” Mr. Mon said.