A federal judge has ruled against Adknowledge, allowing a class action lawsuit to move forward that accuses Adknowledge of using deceptive advertising in order to cheat consumers.
The lawsuit claims that Adknowledge, in conjunction with Tatto Media sold posters to consumers for only a 99-cent shipping charge. However, the lawsuit charges that consumers then found that they were automatically signed up for monthly club that would charge them $29.95, and they’d then receive two more posters per month, whether they wanted them or not.
Adknowledge also faces a similar lawsuit in California, that could be made into a class-action, where users claim that Adknowledge tricked them into buying unwanted merchandise in exchange for free subscriptions. According to that lawsuit, Adknowledge offered products via Zynga games, including YoVille, without disclosing that consumers would be have monthly charges if they accepted offers.