FTC v. Jesta Digital

Citation
Fwederal Trade Comm'n v. Jesta Digital, No. 1:13-cv-01272 (D.D.C. Aug. 20, 2013)


 * Complaint (full-text).

Complaint
According to the complaint's allegations, some consumers saw banner ads on their mobile devices that falsely claimed a virus had been detected. Clicking on the ad led to a screen with a button stating "Get Now" above the phrase "Protect your Android [phone] today." Consumers who clicked "Get Now," and then a button on a subsequent page marked "Subscribe," were then subscribed to the $9.99 per month ringtone subscription plan, though the nature and cost of the subscription were never adequately disclosed. Indeed, some consumers were subscribed even if they clicked on parts of the screen other than the "subscribe" button.

Moreover, if consumers actually attempted to subscribe and download Jesta's so-called anti-virus software to their mobile devices, the download often failed. Jesta used a process known as WAP or Wireless Access Protocol billing, which captures consumers' phone numbers from a mobile device, to obtain consumers' purported authorization for the charges. Thus, consumers never even entered their phone number prior to being billed.

The FTC alleged that the defendant lured consumers into purchasing a monthly subscription for ringtones using deceptive practices.

Source

 * Mobile Cramming: A Federal Trade Commission Staff Report, at 9.