Mobile content firm Media Breakaway has reached a settlement with Florida’s attorney general under which it will pay $1 million and abide by guidelines on clear and conspicuous disclosure of terms in marketing mobile content, it was announced earlier this month.
Media Breakaway—headed by well-known e-mail marketer Scott Richter—provides mobile content, usually ringtones or wallpaper for an individual’s cell phone, marketed by internet advertising.
According to Florida Attorney General Bill McCollum, Media Breakaway’s ads often failed to clearly and conspicuously describe the prices and terms of service.
“The mobile content, described as ‘free’ or ‘complimentary,’ usually resulted in a consumer unwittingly being signed up for costly monthly subscriptions,” McCollum’s office said in a statement.” A large number of CyberFraud complaints led to a widespread investigation over the past several months which revealed thousands of Florida consumers had received these charges on their cell phone bills for mobile content downloads that they neither desired nor authorized.”
In a statement, Media Breakaway referred to the settlement as the culmination of a 12-month collaborative effort with Florida’s attorney general.
“The outcome of that collaboration is a set of guidelines that will help marketers produce advertisements that focus on the consumer experience with regard to various ringtone and mobile marketing products and services,” the company said. “This benefits the consumer and the advertiser.”
This isn’t the first time Richter’s marketing practices have made news.
An arbitrator ruled in June Media Breakaway must pay MySpace $6 million for sending unsolicited messages to MySpace members.
MySpace had accused Media Breakaway of sending thousands of unsolicited e-mails to MySpace members disguised as messages from friends promoting one of Media Breakaway’s properties. MySpace also alleged the addresses were obtained by phishing.
Richter’s previous company, OptInRealBig, was bankrupted when he settled a lawsuit brought by Microsoft and New York Attorney General Eliot Spitzer for $7 million and $50,000 respectively.
