Classmates.com Settles Lawsuit Over Phony Friends 127
Posted
by
Soulskill
from the enjoy-your-three-bucks dept.
from the enjoy-your-three-bucks dept.
Hugh Pickens writes "Techflash reports that Classmates.com has agreed to pay up to $9.5 million to its users to settle a lawsuit that accused the social network of sending deceptive emails that made people believe their old friends from high school were reaching out to connect — only to discover, after paying for a membership, that their long-lost buddies were nowhere to be found. Lawyers for the plaintiffs asserted that Classmates had 'profited tremendously from their false or deceptive e-mail subject lines and related marketing tactics.' Under terms of the proposed settlement, Classmates.com members who upgraded to premium memberships after receiving one of the 'guestbook' emails will be able to choose either a $3 cash payout or a $2 credit toward the future purchase or renewal of a Classmates.com membership. Classmates.com is also among companies that have come under scrutiny for their use of 'post-transaction marketing' tactics — in which customers are given additional offers as part of the online payment process, sometimes in such a way that they aren't aware they're also signing up to pay more. A November 2009 US Senate Committee report said Classmates made more than $70 million through its relationship with post-transaction marketing firms. The Classmates Media unit posted $58.8 million in operating profit for 2009, up more than 24 percent from the previous year, making Classmates 'the most profitable social network in the world,' according to CEO Mark Goldston."
Obigatory Onion article (Score:4, Funny)
http://www.theonion.com/content/news_briefs/classmates_com_employees [theonion.com]
I suppose ... (Score:5, Funny)
... the next thing you are going to tell me is that all these hot girls in my neighborhood advertising on various web sites aren't real either. That would be a tragedy.
After being stood up by a bunch of high school friends that never gave be the time of day when I was there, I was looking forward to some female companionship just to sooth my bruised ego.
Re:The Real Scam? (Score:5, Funny)
In fact, they are so stupid that they'll think $3 is a great deal.
Thank you Classmates.com for helping get rid of stupid people.
Re:Why would anyone take the $2 credit? (Score:0, Funny)
why wouldn't you take the $3, apply $2 yourself to your renewal, and spend the other $1 on a hamburger or something
Is the average person that pays for a Classmates.com subscription smart enough to figure that out?
Re:The Real Scam? (Score:5, Funny)
Obviously you have never been to Alabama.
Meetup.com (Score:3, Funny)
Yeah, i think meetup.com would do this. I remember tying to start a pickup soccer group a while back.. we had maybe a dozen people confirm a meeting, and then two showed up.