San Jose-Calif.based company Game Theory was accused of "deceptive and fraudulent advertising of its premium text message service" which tricked users into signing up for monthly text messages they didn't ask for, according to a statement from the New York State Attorney General's Office. Game Theory agreed on a settlement to "reform its business practices and pay $500,000 in penalities," the Attorney General's office said.
Game Theory allegedly sent deceptive text messages tricking recipients into signing up for monthly text messaging plans that cost $9.99 a month, the Attorney General's office found in its investigation. These charges appeared on the cell phone bill in such a way that it was difficult for users to know they'd signed up for the service.
For example, between May and July of 2011, Game Theory sent messages claiming the user had a "secret crush," and the user had to respond "yes" to find the identity of the crush. That response also signed the user up to a text messaging service to receive dating tips. Other variations included "Someone thinks your hot!," "You have 1 unread message," and "Someone sent you a weird diet tip that works," according to the statement. Game Theory also had a phone app that allowed users to manipulate images. Installing the app also signed users up to the text message service.
"As a result of this settlement, Game Theory is out of the texting business for good," Attorney General Eric T. Schneiderman said in the statement. Schneiderman had a few tips for staying safe from these kinds of scams:
1) Never respond to unsolicited text messages. If you don't know who sent it, or if the message is from a service or business you haven't requested messages from, don't respond. There is no crush. Some messages may read, "reply 'STOP' to avoid charges." Ignore them. Delete them.
2) Remember that these service are packed with hidden fees. Remind family members, especially children, that responding to text messages can incur charges that may be difficult to reverse. Responding to email or television commercials offering services such as joke-of-the-day texts, horoscopes, love advice, and ringtones all have additional fees.
3) Carefully check your phone bill. Are you already being charged for unwanted services? Look for terms such as "premium content" or "direct bill charge," which are often used to mask unwanted charges.
4) Block third-party charges. Call your cell phone service provider and ask them to block any and all third party charges going forward.
5) Do not click on links. Never click on web links in unsolicited text messages. Links are most often provided in fraudulent messages that claim the recipient has won some contest or prize.
6) Talk phone safety. It's important to discuss these tips with all family members who have access to a cell phone. Deceptive cell phone practices often target younger users.