Feeds

'Matrix' gadget sites shut down

If it's too good to be true...

  • alert
  • submit to reddit

The essential guide to IT transformation

Two UK web sites running dodgy matrix schemes have been pulled following an investigation by the Office of Fair Trading (OFT).

The sites - Pulsematrix.com and phones4everyone (at themobilematrix.com) - promised punters the chance of getting their hands on a snazzy "free digital gift" such as a mobile phone or iPod in return for buying a low value item (say £20) such as a ringtone CD.

But the OFT ruled that the sites were illegal because they were little more than unlawful lottos that breached the Lotteries and Amusements Act.

Once punters bought the low value item, they were then put on a waiting list for the pukka gear which they would get once they reached the top of the list.

However, for each "free gift" dispatched, hundreds of new people would have to sign up to the scheme and buy a low value item.

"These schemes are ultimately unsustainable and will eventually collapse to the detriment of thousands of people," said OFT bigwig Penny Boys.

"Very few people will ever receive the 'free gift' they expect to get."

Last December the OFT warned punters about the dangers of "matrix schemes" saying that teenagers in particular were sucked in by these too-good-to-be-true scams. ®

Related stories

Punters warned over 'matrix' web scam
Directors disqualified for £3m internet scam
Internet forces British banking industry to modernise
Massive web trawl nets spammers
Europe probes 'rip off' Apple iTunes pricing
Euro MPs face scam crackdown
OFT in net spam scam crackdown

Boost IT visibility and business value

More from The Register

next story
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.