Jesta Digital LLC, a mobile marketing corporation, would refund its clients and pay USD1.2 million to the Federal Trade Commission. The moves would be part of the company's settlement regarding claims that Jesta included unwarranted fees on the cellphone bills of its consumers.
Jesta has been running a virus-scan advertisement on a consumer's Android phone while playing Angry Birds. The ads would misleadingly claim that viruses were present on the consumer's phone. Clicking on the advertisement would lead the user to a new screen promoting the protection of Android mobile phones. If consumers choose to click anywhere on the screen, Jesta would increase their bills. FTC found that Jesta charged USD9.99 each month to its consumers. The fees were added to clients' handset bill for ringtones and other contents.
The conditions of the proposed settlement said Jesta would pay USD1.2 million to the FTC. It would provide refunds to every affected user. According to FTC, the number of customers entitled for the refund was still unknown but it believed that it would be a substantial payment on Jesta's part.
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