The model is extremely effective: take a quiz and enter your phone number to find out the results. The only problem is that once you enter your phone number you’ll be charged $20 a week. The quiz is not actually hosted on Facebook though. Instead, users will view the advertisements on applications like the “How Well Do You Know Me?” application. The developers of the application (and the collaborating ad network) have cleverly embedded advertisements that fit well with the application.
There is a legitimate purpose of the “How Well Do You Know Me? ” application but the ads aren’t as legitimate. Some of the ad networks have come under fire recently for serving up the misleading advertisements. As I wrote back in March, one ad network was forced to payout $500,000 in a settlement. Essentially that settlement has simply become part of the cost of doing business though.
Typically this news wouldn’t have frustrated me because it is a widely known dirty practice among some of the top advertisers. The “How Well Do You Know Me?” application has over 24 million monthly active users though so I know that thousands of individuals have been impacted by these scams. One of those happened to be my mother who called me up the other day to tell me that she had a $25 fee on her phone that was a result on clicking on one of the application advertisements.
Initially I experienced multiple emotions including guilt (as though I had contributed to the problem) and a bit of frustration that my mother had been duped into one of the scams. At a certain point these companies need to draw a line and say that some advertisements are simply unethical. I’m reaching out to some of these ad networks directly to see if they let developers opt-out of such advertisements.
At the end of the day, who ends up being responsible for those advertisements? The developers? The ad networks? While these scam ads are paying out higher CPMs right now, is this the best way to build a sustainable business? I personally disagree with this business practice but even I have received money from some of these ad networks at one point or another which makes me feel extremely guilty. Should Facebook be responsible for more effectively monitoring these ad networks?
In the example ad that I’ve included below, users are redirected to a site that looks like Facebook but isn’t. While you can say that the users were ignorant, it’s simply human to make mistakes. If enough people click on the ad, a small percentage of people will slip up and enter their number. Should the social advertising industry develop best practices for what ads are acceptable? The IAB has published their own best practices for social advertisements but it doesn’t include what ads are displayed.
Update
Facebook sent us the following statement: “We’ve received some reports of deceptive content in ads placed within apps by developers. These ads are not from Facebook but we are concerned about any potential threat to our users’ experience. We have already had the ads removed from a number of apps. We are continuing to investigate to make sure these ads stay off Facebook and may take further action against developers who host the ads.”






![[Inside Social Apps 2012]](http://www.allfacebook.com/wordpress/wp-content/themes/allfacebook2/images/ISA2012_336x100_F_RegisterNow.gif)
![[AllFacebook Stats: Facebook Analytics for Your Business]](http://www.allfacebook.com/wordpress/wp-content/themes/allfacebook2/images/stpro_allfacebookstats.gif)
![[How can Facebook change your business?]](http://www.allfacebook.com/wordpress/wp-content/themes/allfacebook2/images/FMB_A_MAY2011_336x100_F.gif)


I think this kind of ads are hosted by socialcash. unfortunately, most networks have similar ads. i have ended up using only adsense ads on my apps because of this
Comment by igniguy — May 28, 2009 @ 7:06 am
This is really clever, shady as hell but really well done. Wonder how/if Facebook will crack down on this.
Comment by Facebook User — May 28, 2009 @ 7:18 am
I've clicked through several of these ads to see if they are scams. I've entered my phone number in every time and never been billed a cent – which makes sense. What if I entered my friend's phone number, would he be charged? No. Every time I've done this I've received a text message that says the service will cost $9.99/mo. and a pin that I have to take back to the website to enter in to confirm that I am the owner of the cell phone. On the screen where I enter the pin it clearly says (above the fold, not in small font) that I am signing up for a $9.99/mo. service which will be billed through my cell phone account. Getting the results of the quiz has never been worth it to me so I have not entered my pin. While I agree that the advertising is questionable and I can't understand why someone would pay for "premium" text messaging and cell phone games, I don't believe it is a scam. Go ahead and enter your cell phone number – you won't get charged anything.
Comment by J.L. — May 28, 2009 @ 8:27 am
these developers and networks cause others on the platform to work even harder to earn others' trust…ultimately, this will not produce sustainable value.
thanks for bringing to people's attention Nick.
Comment by Mike Kerns — May 28, 2009 @ 8:47 am
That IQ test ad is one of the ones I looked at today in relation to privacy issues.
Comment by theharmonyguy — May 28, 2009 @ 8:39 pm
You have ads on AllFacebook.com (Points to the upper right) to the same companies that are displaying the ads on Facebook you write about. So you are part of the problem you write about.. funny how that works huh?
Comment by Hypocrite — May 28, 2009 @ 9:41 pm
@Hypocrite who won’t write their name … while I’m not going to call out individual sponsors, what was the last media company that you’ve seen that has draw attention to bad practices that could have originated by some of their sponsors?
I’m not going to starve myself by killing off sponsors but I’m sure as hell not going to stand for deceptive practices.
Comment by Nick ONeill — May 29, 2009 @ 12:32 am
Your mom is a dumb hooker. Have her go back in the kitchen and make me some blueberry pancakes.
Comment by Bill Jacksono — May 29, 2009 @ 12:41 pm
"I’m not going to starve myself by killing off sponsors but I’m sure as hell not going to stand for deceptive practices."
Take a breath, and ask yourself, doesn't this sound like the rationale of EVERY SINGLE DEVELOPER who runs these things. what an awkward call out piece.
Comment by Hypocrite 2 — May 29, 2009 @ 1:13 pm
Nice article…reading the comments though…lashing out only opens yourself up to being criticized by others…
If killing off sponsors is going to cause you to starve then you're in serious trouble as it is. Just sayin. I doubt that's really the case though. Also, allowing deceptive practices is the same as tolerating them.
Comment by James — May 31, 2009 @ 10:06 pm
You bunch of retards, the billing will only occur ONCE the PIN is received (on your phone) and submitted (on the website), and there are usually more pricing disclosures that come along with the PIN…but people, mostly teens, are too brain dead to read any of this… or maybe they don't care that mamma is going to fit the bill.. truth of the matter is that mobile offers work because of the lack of physical interconnect between a service and monetary obligation….just watch a top video show on MTV or MuchMusic (Canada) and you have a bunch of numnuts texting msgs like "I love this video!" "Shout out to my love" for $0.75/txt… I applaud any company who takes advantage of the feeble minds, I will actaully employ this in one of my apps! Thanks for the idea!
Comment by Tboner — June 1, 2009 @ 8:38 am
I've done this, and cancelled the services, however there were 14 total charges on my account…I only allowed it for three..never got a text from the other 11 is was "railroaded" into. Verizon states, "you authorized thee charges, and there is nothing we will do for you."
When I informed Verizon that I did not allow the other "tack on" texts permission, I was just given 11 "800" numbers and told I need to take care of them. After about 8 hours on the phone, I have yet to be credited!!!
BEWARE!!!
Comment by tom weise — June 2, 2009 @ 11:41 am
I noticed this cheezy practice on Facebook as well which altogether confirmed my position of not taking part in any of these apps at all.
Long term this is extremely hurtful to Facebook because it makes people very reluctant to get involved in any of the advertising or applications that they might otherwise have been interested in.
I also think cell phone companies should completely do away with the practice of third party billing for things like ring tones or text message alerts. It's just a shady shady practice that builds a lot of ill will.
Comment by Wayne Schulz — June 3, 2009 @ 8:36 am
Just wanted to add that there is hope for those who were scammed (and sorry, IMO this is a scam). If you stay calm and contact the Premium SMS provider's customer service, they will arrange at least a partial refund of the charges. Refund comes in the form of a check sent by mail. Had $400 of premium sms charges refunded (don't ask – teen/automatic top up for prepaid cell phone = mega charges)
Comment by Sara Ferguson — June 3, 2009 @ 6:26 pm
I got almost 75 dollars bill from this sneak…premium blah blah……does anyone know what should i do?
Comment by Dowon Lee — June 27, 2009 @ 5:55 pm
Dowon, very important to reply STOP to the message on your cell phone!! Otherwise, they will keep coming and you will keep getting billed.
Comment by Sara Ferguson — July 4, 2009 @ 2:24 pm
i think this is like super ultra mega bad fo sho my nizzle in the hizzle
Comment by john — July 25, 2009 @ 4:09 pm
Its scary that people sign up for these scam programs. You have to be a little dumb if you sign up for a $9.95 per month mobile billing service to get the results of your 5 question IQ test.
Unfortunately, a lot of people do it! –> http://www.facebook.com/pages/Dumb-IQ/166690143771
Comment by Dumb IQ — November 3, 2009 @ 8:38 am
Unfortunately, these SCAMS prey on the less sophisticated computer users. Teens and seniors are especially vulnerable as they see the pics posted of their friends who have supposedly taken the quiz. They figure that since "Billy Jean" took it, then it must be okey to enter the number. They just want to get the answer to the IQ test!! It is a crying shame that such underhanded practices are allowed. If the company was legit, they would advertise their ring tones, wallpaper, etc and sell their product that way. It is OBVIOUS they are preditors.
Comment by Selene — November 3, 2009 @ 7:28 pm
My sister got scammed by the IQ test on Facebook so I’m aware of how the enter your phone number and subscribe works. I have a web site where I teach English and there is a VERY common ad that shows up on nearly all English teaching web sites through Google Adsense – http://www.theselva.com/ads-requesting-your-phone-number/
The ad is of a little British guy in front of the British flag asking you to test your English level for FREE! lol. It’s anything but free, it’s a subscription, plus you’ll be charged 0.99 euros per SMS.
Anyway, my point is that no matter which ad wants your phone number DON’T give it to them even if you think it’s legit. They are scammers and purposely making you think it’s ligit.
Comment by Jessica OJeda — March 10, 2010 @ 6:48 am
this company are scumbags if anyone can help me find who this is or a company name please email me at tdestories@gmail.com …ill take care of them beleive me ….I gave them enough money
Comment by tony destories — April 8, 2010 @ 10:03 am
Oh god. I did one of those things a couple months back. It might have been last year in the fall, actually.
Do I just change my phone number now, or am I screwed?
Comment by Michael Burke — July 7, 2010 @ 1:54 pm
i just discovered that one of my companies phones had been used by an 8 year old responding to a face book game. it cost me almost 400$. it also cost the employee his phone, his daughter all phone and facebook priveledges. i am also deleting my facebook account and if any other cell provider in my area comes up with a means to stop this crap, they will get my business immediately.
oh yeah btw by reading this you are authorizing me to bill you for 20$. in return you will recieve absolutely nothing. please send cash as its too much effort to go to the bank to cash a cheque.
may EVERY scumbag associated with these scams fall off the face of the earth. no one will miss you.
Comment by mike garratt — January 14, 2012 @ 9:24 pm