Reliant’s Deceptive Credit Card Scheme, DAZN’s Subscription Practices, 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 Credit Card Practices
   On September 13, 2024, the Consumer Financial Protection Bureau (CFPB) filed a complaint against Reliant Holding Inc. and its CEO, Robert Kane, for engaging in deceptive practices and dark patterns. Key allegations include:
   ➡ Misleading advertising that made consumers believe their credit cards could be widely used, when in reality they were restricted to Reliant's Horizon Outlet store.
   ➡ Illegal monthly fees of up to $24.99, exceeding limits under the Truth in Lending Act.
   ➡ Significant difficulties for consumers trying to cancel memberships, despite promises of easy refunds.
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   Between 2017 and 2021, nearly 900,000 consumers were enrolled in the program, with 93% never using the credit but paying over $45 million in fees.‍
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2. DAZN Sued for Alleged Subscription Dark Patterns
   Sports streaming service DAZN is facing a proposed class action lawsuit for violating California’s Automatic Renewal Law. Allegations include:
   ➡ Automatically renewing subscriptions without proper disclosure of terms.
   ➡ Charging fees without clear customer consent.
   ➡ Making cancellations unnecessarily difficult by not providing straightforward options like a toll-free number.
   
   This lawsuit highlights the growing scrutiny around subscription services and the use of dark patterns in their processes.‍
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3. Consumer Groups Call for Clearer Pricing in Video Games
   Members of the BEUC, including UFC-Que Choisir and CLCV in France, are demanding stricter regulations on virtual currencies in video games. Concerns raised include:
   ➡ Virtual currencies, like points or gems, obscure the real cost of purchases by requiring currency conversions.
   ➡ Publishers avoid displaying prices in euros, making it easy for players to lose track of their spending.
   ➡ Varying exchange rates for virtual currency packs further complicate calculations.
   
   These groups are calling for:
   ➡ Mandatory display of pricing in euros.
   ➡ Better consumer protections against overspending.
   ➡ A potential ban on paid virtual currencies to prevent exploitation.

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Conclusion:

This week’s updates highlight critical issues in digital fairness, from deceptive credit card schemes to subscription traps and unclear pricing in video games. These cases serve as a reminder of the importance of transparency, user empowerment, and ethical practices in the digital world.

At Fairpatterns, we’re here to help organizations create user-centric, compliant digital experiences while building trust with their audiences. Let’s continue driving positive change together. Have a great week with Fair Monday!