Recently, I looked at my mobile phone bill and noted data charges of $20.18 per month associated with my daughter's cell phone number. I called my service provider and asked about the charges which were labeled Premium TXT Services and was advised that I had been charged $20.18 per month for the past three months and that the charges would be taken for the coming month per a recurring charge authorization. I asked my daughter about the charges and she told me that she had taken an online IQ test a while ago and she was shocked to learn about the charges.
The company preys on kids who don't have the savvy to understand an online agreement written in legalese, and who assume that they are agreeing to some harmless arrangement based on the marketing lure of what appears to be an innocent IQ Test. The company asks for the kid's cell number and sends the kid a pin to be entered online together with acceptance of the terms and conditions that provide for monthly recurring charges of $10 /-. Of course, the instructions are provided that inform the user how to stop the service, but the whole presentation is done in a way to focus attention on the fun part of the deal and not the business terms.
I have since asked the phone company to block such services for our cell phones, but I think that there should be a warning to parents with kids who have cell phones about this operation. I also think that transactions initiated by kids should be subject to a full refund of all charges. Moreover, the company should not accept orders from under age parties.
This company already settled one class action suit, but it still persists in using these unsavory practices to scam kids whose parents are unwttingly footing the bill.
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