CATrends: Buy Now, Pay Later Services Send Users Further Into Debt
The result is that BNPL services that are advertised as free aren’t, class-action lawsuits allege.
In 2010, the FTC charged Iovate Health Sciences and two affiliated Canadian companies with deceptively advertising that certain dietary supplements (Accelis, nanoSLIM, Cold MD, Germ MD, and Allergy MD) could help with weight loss, and treat and prevent colds, flu, and allergies. Iovate agreed to pay $5.5 million in consumer refunds to settle the matter. Consumers who bought any of the supplements between January 2006 and July 2010 have until April 1, 2013 to apply for a refund. For more information on how to apply, go to http://www.ftc.gov/bcp/cases/iovate/.
The result is that BNPL services that are advertised as free aren’t, class-action lawsuits allege.
Tricking consumers into paying hundreds of dollars for services that are available for free.
Even the CEO acknowledges that some consumers have confused the company for the federal government.
Rob Walker, Fortune
Gimme the loot (boxes).