Webpower
Worldgroups.com ripoff Deceptive trade practices regarding use of word "Free"

Worldgroups.com is a social networking website in the mold of Yahoo! Groups. Billing for the website's various tiers of paid subscriptions is handled by Webpower, Inc., although the contact info provided at worldgroups.com lists the owners as "Responsible Media Technologies, LLC" of 63 Remuera Road, Auckland, New Zealand. (This address happens to be a mail-drop box at a Mailboxes, Etc.; the company is not registered as a business in New Zealand.)

Worldgroups.com makes use of the adjective "free" to describe a level of membership to the site's contents (e.G. "Join for Free, " "please complete the form below to activate your free WorldGroups registration, " "Free Registration Form, " "You will not be billed for basic free registration, " "Confirm Free Registration, " etc.). At the end of the registration process, an applicant must provide credit card information which, the site says, is for "restricted use; for confirmation only" (understood to be age or identity confirmation). However, the site's Terms and Conditions, available for review only upon reaching the final step of the registration process, contain mention of a $1 USD charge to the applicant's credit card, refundable as a "courtesy" only if the applicant explicitly calls and requests it. Thus, the use of the term "free" is deceptive, misleading, and not legal according to the FTC's "Guide Concerning the Use of the Word 'Free' and Similar Representations, " 16 C.F.R. Sec. 251.1. This guide states in subsection C, "Disclosure of Conditions, " the following:

"When making "Free" or similar offers all the terms, conditions and obligations upon which receipt and retention of the "Free" item are contingent should be set forth clearly and conspicuously at the outset of the offer so as to leave no reasonable probability that the terms of the offer might be misunderstood. Stated differently, all of the terms, conditions and obligations should appear in close conjunction with the offer of "Free" merchandise or service. For example, disclosure of the terms of the offer set forth in a footnote of an advertisement to which reference is made by an asterisk or other symbol placed next to the offer, is not regarded as making disclosure at the outset."

In summary, WorldGroups.com does not set forth "clearly and conspicuously" that the $1 will be charged at the "outset of the offer, " and obviously the terms and conditions do not appear in "close conjunction" with the many uses of the word "free" to describe the level of membership.

Upon review of the circumstances surrounding this company (postal drop box address overseas, lack of response to complaints), I personally have concluded that it is a scam operation and have motioned the FTC to investigate.

Company: Webpower
Country: USA
State: Florida
City: Lake Worth
Address: 7765 Lake Worth Rd., PMB 341
Phone: 5616560500

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