A mobile app that used cash incentives to get consumers to sign-up for fitness and nutrition goals has been taken to task by the Federal Trade Commision (FTC). The app know as the Pact App makes a pact with a person to exercise a certain number of times/week or meet dietary goals. The app automatiaclly charges an amount if the user misses a goal. In turn, consumers who meet thier goals were to receive a share of the money collected from those who failed to meet weekly goals.
The individuals who operated the app charged tens of thousands of consumers penalties, even when their goals were met. Additionally, consumers were not given adequate information how to cancel the service. Many consumer continued to get charged after they attempted to cancel the app.
This app was shut down in July, 2017. Consumers will receive more than $940,000 in earned cash rewards and refunds for improper charges as part of a $1.5 million judgment. Pact has already begun the process of returning money to consumers, and, under the terms of the settlement, must notify consumers and complete payments of more than $940,000 within 30 days of entry of the order. Click here to learn more.
For more information, please contact BBB at email@example.com or 1-866-463-9222.
ABOUT BBB: For more than 100 years, Better Business Bureau has been helping people find businesses, brands and charities they can trust. In 2016, people turned to BBB more than 167 million times for BBB Business Profiles on more than 5.2 million businesses and Charity Reports on 11,000 charities, all available for free at bbb.org. The Council of Better Business Bureaus is the umbrella organization for the local, independent BBBs in the United States, Canada and Mexico, as well as home to its national and international programs on dispute resolution, advertising review, and industry self-regulation. BBB Serving Central Indiana was founded in 1916 and serves 46 counties in Central Indiana.