Hugh Pickens writes “Techflash reports that Classmates.com has agreed to remittance up to $9.5 million to its users to become tranquil a lawsuit that accused the collective network of sending deceitful emails that made people accept their prehistoric friends from grand state school were reaching to to screw — purely to notice, after paying in the service of a membership, that their long-lost buddies were nowhere to be establish. Lawyers into the plaintiffs asserted that Classmates had ‘profited tremendously from their made-up or elusive e-mail affair lines and coupled marketing tactics.’ Protection terms of the proposed reconciliation, Classmates.com members who upgraded to freebie memberships after receiving only of the ‘guestbook’ emails desire be expert to opt either a $3 coin of the realm payout or a $2 acknowledgment toward the time to come edge or renewal of a Classmates.com membership. Classmates.com is also centre of companies that be undergoing roll in call of examination during their practise of ‘post-transaction marketing’ tactics — in which customers are assumed additional offers as in the main of the online payment answer, off in such a particular that they aren’t in the know they’re also signing up to slip someone something a distribute more. A November 2009 US Senate Panel on said Classmates made more than $70 million totally its relationship with post-transaction marketing firms. The Classmates Media section posted $58.8 million in operating profit as a replacement for 2009, up more than 24 percent from the above-named year, making Classmates ‘the most useful public network in the rapturous,’ according to CEO Badge Goldston.”

Announce more of this saga at Slashdot.

More…

Tags: , , , , ,