That is illegal. What would be more interesting would be to offer to return twice the money, less an admin fee of 10%. While on the surface that appears to break even(ish), you can rely on inertia for people not actually to ask for their money back.
With the 200% guarantee, that might not even be illegal.
EDIT: Finally got to read the actual article and realised that this is already covered. Sorry - /mea culpa./
What law does that break? It seems the same as any other infomercial product's claims: "If this product isn't the best widget you've ever bought, or you're not completely satisfied for any reason, we'll refund your money"
In this case, if the prediction is wrong (not the best widget/customer not satisfied), they can get their money back.
Come to think of it, the prediction claim isn't much different from most test prep higher score guarantees.
In conversation with a UK lawyer it would be deemed illegal as you are misrepresenting the "product" for which you are taking money. It's effectively the same law as covers items sold where they are clearly intended for a particular purpose, but then try to claim no guarantee that they are, in fact, fit for that purpose.
UK law is very broad in its protection of consumers against "products" that are presented in a deceptive manner.
"covers items sold where they are clearly intended for a particular purpose, but then try to claim no guarantee that they are, in fact, fit for that purpose."
You mean like just about every software license agreement in the world? ;)
So basically... If there is no "insurance" so that mail a notarized copy of the birth certificate is enough to get a refund, you will never hit the law because the failure to provide an accurate prediction warrants the full refund.
If people get really rowdy, refund anyways. Shoot even if it's late refund. I'd be super lenient with it, you will make plenty of money.
For the U.S., I doubt there are criminal laws to worry about in this case. You can always get sued for "fraud" (not-criminal), but who sues for $50?
About the only criminal area you need to worry about is mail fraud. Which would be fraud while using the U.S. postal service. But that's not a real concern either, as your only using mail to process refunds, not to solicit. You also don't need to use the mail, as you can require faxing or email of birth info. btw, IANAL.
I think the laws are more liberal here (California).
I think if you offered a no questions asked moneyback guarantee for wrong predictions, then the only people paying would be people whose predictions were correct (assuming every person with a wrong prediction requested a refund). You would of course put a disclaimer (as psychic hotlines do) that it is for entertainment purposes only, etc.
Exactly. The point is that the laws as framed may not cover that situation. Having checked with a UK lawyer friend, though, it would almost certainly still be illegal in the UK, and the only reason I say "almost" is because everywhere, going to law is a lottery with unreliable odds.
Comments
That is illegal. What would be more interesting would be to offer to return twice the money, less an admin fee of 10%. While on the surface that appears to break even(ish), you can rely on inertia for people not actually to ask for their money back.
With the 200% guarantee, that might not even be illegal.
EDIT: Finally got to read the actual article and realised that this is already covered. Sorry - /mea culpa./
What law does that break? It seems the same as any other infomercial product's claims: "If this product isn't the best widget you've ever bought, or you're not completely satisfied for any reason, we'll refund your money"
In this case, if the prediction is wrong (not the best widget/customer not satisfied), they can get their money back.
Come to think of it, the prediction claim isn't much different from most test prep higher score guarantees.
In conversation with a UK lawyer it would be deemed illegal as you are misrepresenting the "product" for which you are taking money. It's effectively the same law as covers items sold where they are clearly intended for a particular purpose, but then try to claim no guarantee that they are, in fact, fit for that purpose.
UK law is very broad in its protection of consumers against "products" that are presented in a deceptive manner.
"covers items sold where they are clearly intended for a particular purpose, but then try to claim no guarantee that they are, in fact, fit for that purpose."
You mean like just about every software license agreement in the world? ;)
So basically... If there is no "insurance" so that mail a notarized copy of the birth certificate is enough to get a refund, you will never hit the law because the failure to provide an accurate prediction warrants the full refund.
If people get really rowdy, refund anyways. Shoot even if it's late refund. I'd be super lenient with it, you will make plenty of money.
For the U.S., I doubt there are criminal laws to worry about in this case. You can always get sued for "fraud" (not-criminal), but who sues for $50?
About the only criminal area you need to worry about is mail fraud. Which would be fraud while using the U.S. postal service. But that's not a real concern either, as your only using mail to process refunds, not to solicit. You also don't need to use the mail, as you can require faxing or email of birth info. btw, IANAL.
I think the laws are more liberal here (California).
I think if you offered a no questions asked moneyback guarantee for wrong predictions, then the only people paying would be people whose predictions were correct (assuming every person with a wrong prediction requested a refund). You would of course put a disclaimer (as psychic hotlines do) that it is for entertainment purposes only, etc.
"This product is intended for entertainment purposes only."
There's a reason for that little line.
Call the product "I Will Guess Your Baby's Gender". www.iwillguessyourbabysgender.com
That seems even more illegal... You're describing betting on a coinflip with a 10% vig.
Exactly. The point is that the laws as framed may not cover that situation. Having checked with a UK lawyer friend, though, it would almost certainly still be illegal in the UK, and the only reason I say "almost" is because everywhere, going to law is a lottery with unreliable odds.