4 ms·
Businesses like this depend largely upon forgetful users and credit card rebills to be viable. Successful user acquisition comes down to how small/hard to read/
by nugget 11y ago
Businesses like this depend largely upon forgetful users and credit card rebills to be viable. Successful user acquisition comes down to how small/hard to read/hard to find that rebill disclosure can be made without getting sued by the FTC. Smartest thing these guys ever did was recruiting Kate Hudson to be a celebrity spokesperson for the Fabletics brand, which threw a lot of regulators off and bought them some initial air cover. But at the end of the day it's the same business and they will eventually be held accountable to reasonable standards.
- deleted 11y ago[deleted]
- arbuge 11y agoIndeed. Another example: https://www.ftc.gov/news-events/press-releases/2014/11/ftc-illinois-ohio-stop-scheme-offered-free-credit-scores-then https://www.ftc.gov/news-events/press-releases/2014/11/ftc-i... The FTC fines seem to be quite affordable to these players, who may just see them as a minor cost of doing business. Sensa for example had sales of $300m, fines of $26m. The example above has annual sales of around $250m. The profit margins on the sales numbers for these kinds of products are very high too.