Jamster

Agency: Federal Trade Commission (FTC)Washington
Description: On August 21, 2013, the Federal Trade Commission (FTC) settled a complaint against Jesta Digital, LLC, DBA Jamster, and its principals, for cramming charges on consumers mobile bills through ‘Scareware’ and misuse of Novel Billing Method known as Wireless Access Protocol (WAP). WAP billing captures a consumer’s mobile phone number from the mobile device, which is used to place charges on their mobile phone bill without the need to obtain the information manually from the consumer.

According to the FTC, the defendant ran phony virus-scan ads on consumers’ Android mobile devices while they played the Angry Birds mobile app. The ads falsely claimed that a virus was detected on the consumer’s mobile device. The ads incorporated an image of a robot designed to look similar to the Android operating system’s robot logo. When consumers clicked on the ads, the defendant presented them with a series of screens or landing pages that included bold and prominent language and visuals about protecting Android mobile devices from viruses. While a screen contained a subscriber button, the FTC alleged that if consumers clicked anywhere on the screens or landing pages, the defendant charged them $9.99 per month directly on their mobile bill for ringtones and other mobile content. If consumers actually attempted to subscribe and download the defendants so-called anti-virus software to their mobile devices, the download often failed.

Under the terms of the proposed settlement, the defendant is prohibited from making deceptive statements about viruses and anti-virus software, the cost of goods or services, or the conditions of a purchase. The defendant must also receive express verifiable authorization from a consumer before placing any charges on a consumer’s mobile phone bill. The defendant is required to automatically provide full refunds to consumers who were billed between Dec. 8, 2011, and the date of entry of the order for any good or service that involved the company claiming the consumer’s device was infected with malware or that the defendant would provide purchasers with software to protect their mobile device from malware.

For those consumers charged between Aug. 1 and Dec. 7, 2011, under short code 75555, the defendant is required to notify those consumers of their ability to obtain a refund. Consumers will have to contact the defendant at 866-856-5267 or by e-mail at info@jamster.com and make a refund request. The defendant is obligated to pay a refund to consumers who did not use the service offered by the defendant or where the charges were incurred by a child under the age of 18. In addition to providing timely refunds directly to consumers, the defendants will pay $1.2 million directly to the Commission. Consumers with questions about the case or the refund process may contact the FTC for more information at 202-326-3523.

For more information about this case you may visit the FTC's website.
Date of Action: 8/21/2013