Credit Card Deception, DAZN’s Subscription Dark Patterns, and Virtual Currency Concerns

Introduction:

Welcome to Fair Monday! We know Mondays can be a bit rough, so we created Fair Monday to bring you weekly insights and resources on dark patterns and digital fairness. Each Monday, we share updates on the latest developments, helping you stay informed and empowered to create a fairer, more transparent digital space.

This Week's Highlights:

1. Reliant Holding Accused of Deceptive Practices and Illegal Fees
   On September 13, 2024, the Consumer Financial Protection Bureau (CFPB) filed a complaint against Reliant Holding Inc. and CEO Robert Kane. Key allegations include:
   ➡ Misleading advertising led consumers to believe their credit cards could be widely used, though they were restricted to Reliant’s online store, Horizon Outlet.
   ➡ Illegal monthly membership fees of up to $24.99, exceeding limits set by the Truth in Lending Act.
   ➡ Nearly 900,000 consumers enrolled between 2017 and 2021, with 93% never using the credit but paying over $45 million in fees.
   
   The CFPB is seeking to halt these practices and provide restitution to affected consumers.‍
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2. DAZN Sued for Alleged Subscription Dark Patterns
   Sports streaming service DAZN faces a proposed class action lawsuit for violating California’s Automatic Renewal Law. Allegations include:
   ➡ Automatically renewing subscriptions without proper disclosure.
   ➡ Charging fees without clear consent and hiding renewal terms.
   ➡ Making cancellations unnecessarily difficult by not providing easy options like toll-free numbers.
   
   This case underscores the need for transparency and fairness in subscription practices.‍
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3. Consumer Groups Call for Clearer Pricing and Ban on Virtual Currencies in Video Games
   Members of the BEUC, including France’s UFC-Que Choisir and CLCV, are urging authorities to regulate virtual currencies in video games. Concerns include:
   ➡ Virtual currencies obscure the real cost of in-game purchases by requiring conversions from euros to points or gems.
   ➡ Non-transparent exchange rates and lack of euro pricing encourage overspending.
   ➡ A proposed ban on paid virtual currencies to protect players from exploitation.
   
   These recommendations aim to ensure gamers are fully informed about their spending and prevent misleading practices by game publishers.

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Conclusion:

From deceptive credit card schemes and misleading subscription practices to concerns over virtual currencies in gaming, this week’s updates highlight the critical need for transparency, fairness, and ethical practices in digital commerce.

At Fairpatterns, we’re committed to helping organizations create user-centered, compliant digital experiences that prioritize fairness and trust. Let’s keep working toward a more equitable digital world. Have a fantastic week with Fair Monday!

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