Facebook accused of encouraging children to unknowingly spend tons of money on games - Dexerto

Facebook accused of encouraging children to unknowingly spend tons of money on games

Published: 27/Jan/2019 22:08 Updated: 27/Jan/2019 22:14

by Bill Cooney


New findings suggest Facebook put together an organized effort over multiple years to deceive children and parents out of money while playing online, according to newly unsealed court documents.

The files, which span from 2010-2014, were unsealed after legal action was taken by revealnews.org and are now part of a class action lawsuit aimed at Facebook for targeting children. The effort saw a growth of revenue for online games like Angry Birds, PetVille, Ninja Saga and others, that in some cases racked well over hundreds to thousands of dollars from a single source.

According to the documents, Facebook encouraged game developers to let kids spend money without a parent’s permission, which the company referred to as “friendly fraud.”

Sometimes, kids were unaware they were even spending real money, according to an internal report by Facebook itself.

A team of Facebook employees even went so far as to develop a system that could have prevented children from unknowingly spending their parent’s money, but the company chose never to implement it.

The files point to Facebook making a clear and calculated decision to continue targeting children and their parents money in an effort to increase revenue.

EMAGIST ENTERTAINMENT LIMITED“Nina Saga” is one of the Facebook games mentioned in the class action suit.

While some might liken the practice to Epic Games and their popular battle royale Fortnite, there are examples of the game developer working with buyers to possibly get a refund.

But the money Facebook earned off children had such a large chargeback rate that it went beyond what the Federal Trade Commission said was a big warning sign for deceptive business practices.

Facebook hasn’t gotten much in the way of good press these days, and this latest development certainly isn’t a good look for the social media giant that now finds itself under the microscope, again.


Rapper Swae Lee invests in XSET org founded by former FaZe executives

Published: 28/Oct/2020 18:28

by Adam Fitch


The rapper, who’s half of hip hop duo Rae Sremmurd, has invested an undisclosed sum in recently-launched organization XSET.

Launched by former executives at FaZe Clan, XSET pride themselves on diversity and being free of the “frat house culture” present in other organizations.

Swae Lee initially told Rolling Stone that he had invested eight-figures in XSET, though the organization later explained that that wasn’t the case but didn’t disclose a solid figure.

The rapper and XSET members gathered at the Triller house on October 22 to celebrate the launch of his latest single, prior to announcing his official involvement. As you’d perhaps expect, they played games live on the org’s Twitch channel.

XSET Swae Lee Single Launch
XSET helped Swae Lee celebrate his new single.

The report states that further deals with recording artists are in the works, as well as with athletes, and are due to be announced in the coming months.

“I always wanted to be on what’s next. There’s a network of people like myself who want to bring simple access for fans,” Swae Lee said regarding his decision to invest.

“XSET, FaZe, they have fans who like to do the same things I like to do, sit at home on a game and be lazy. I want to help make a huge network for all the kids to enjoy gaming, talk about life, talk smack to each other, get merch and have first-person access to rappers.”

Following FaZe Clan initiating president Greg Selkoe’s exit in January 2020, he and a couple of colleagues launched XSET in July. Serving as the CEO, he’s joined by vice president of apparel, Wil Eddins, and vice president of business development, Clinton Sparks.

Rappers and esports organizations have been coming together for quite some time now. Notable moves include Drake with 100 Thieves, Wiz Khalifa with Pittsburgh Knights, Pusha T and Logic with Chaos EC, and Offset with FaZe Clan.