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GameTheory Messaging Business Shut
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GameTheory Messaging Business Shut

by Pace Lattin2012-09-21

GameTheory LLC, once one of the biggest text messaging marketing companies on the planet, has had their text messaging shut down by the New York Attorney General. This was a result of a settlement with the NYS AG, Eric T. Schneiderman, after an investigation that claimed that GameTheory was spamming users in order to trick them into signing up for texting services.

 These charges appeared on the victim’s wireless telephone bill in a way that was difficult to detect. For months, consumers would pay for text messages they did not want before they realized they were being charged. For example, between May 23, 2011 and July 5, 2011, Game Theory sent text messages claiming that the recipients had a “secret crush,” and that the recipient needed to respond “yes” to find out who it was. However, in the process of finding out the identity of the “secret crush,” the recipient was also unknowingly signing-up for a text message service…”

“There is no legitimate purpose for scams that deceive New Yorkers, and we will continue the fight to protect people’s privacy and their hard earned money” Schneiderman said in a press release. “As a result of this settlement, Game Theory is out of the texting business for good, and this corporation will be held accountable for its conduct.” Game Theory’s deceptive practices violated the General Business Law (Article 22-A) and Executive Law § 63(12).

According to the settlement, GameTheory will be leaving the text messaging business and pay $500k in fines to the State of New York.

GameTheory has since re-branded itself  Mobile Plus Inc since the lawsuit was originally announced.

 

About The Author
Pace Lattin
Pace Lattin is one of the top experts in interactive advertising, affiliate marketing. Pace Lattin is known for his dedication to ethics in marketing, and focus on compliance and fraud in the industry, and has written numerous articles for publications from MediaPost, ClickZ, ADOTAS and his own blogs.
12 Comments
  • Ryder
    2012-09-21 at 12:10

    Wow, that is some terrible news.
    I used to work with GameTheory.

    Will other companies such as Silver-Path be shut down as well?

    • Drina
      2012-09-21 at 12:29

      None of the other PSMS providers should be affected. GT was just operating in an unethical manner. Our company uses PSMS everyday but we do not deceive anyone.

  • Sunny Benson
    2012-09-21 at 13:07

    This is still going on. The MMA and CTIA have done and are doing virtually nothing. The carriers turn a blind-eye to this. There is virtually no enforcement. The FTC needs to step-in and do what the attorney generals have failed to do. They need to pursue serious charges from the top down: Verizon, AT&T, etc. Go after the big boys and tell them enough is enough. In this industry, new jokers turn up weekly with new short codes and start billing all over again like it’s a joke.

  • 2012-09-21 at 13:29

    I thought they changed their name to mobile + a long time ago?!

  • dead end
    2012-09-21 at 15:41

    Many of these “flow” companies have already lost their carrier billing solutions. Mundo, Fluent to name a few. Moolah does a lot of texting too, along with Gambit. Sure, great companies to work with, but is it really worth the risk?

    Who is next to “change their name”? Guesses?

    • Stand corrected
      2012-10-11 at 15:26

      Wrong about Mundo…..carrier billing solutions still working fine

  • 2012-09-21 at 22:48

    I just came onto your post and found it quite interesting. I am also associated with SMS Marketing, SMS text Marketing ,text Marketing, text Messages marketing, and enjoy to read the stuff on the same as its rarely found on internet. Thanks again for writing such a good post.

  • 2012-09-25 at 03:49

    too many similar services, there should be an application that can multi-platfrom

  • Scott
    2012-09-26 at 14:30

    Who has changed their names that you know of so we all can avoid using them?

  • 2012-10-03 at 03:01

    I just came onto your post and found it quite interesting. I am also associated with SMS Marketing,text Marketing, text Messages marketing, and enjoy to read the stuff on the same as its rarely found on internet. Thanks again for writing such a good post.

  • 2013-02-11 at 04:38

    Sending SMS is Nice method to reach your audience with latest products and services. This also help to increase your brand value.

  • 2013-07-15 at 21:45

    SMS is increasingly used all over the world. If you are living in UK and operating business there, then you need to have good marketing strategy

What's your opinion?