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Comment by bradleyjg | Hacker News Reader

Pre-internet, or at least widespread internet, there was a similar scam with music tapes, perhaps records even before that. The first month's selections would be free but for shipping, after that they would send you a bunch every month if they didn't hear from you — and a hefty bill.

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One major difference: JustFab doesn't send you anything, they give you "credits" which can be used for future purchase but most likely got un-noticed and un-used.

So at worst, you'd pay for one item in the first cycle and then cancel.

Also, at least back in the bad old days when I was at various times a "member" of various book clubs, you got sent a bill, the company didn't charge you and enjoy float (interest earned on bank balances) like this company does on their credits.

And those credits will evaporate if/when this company goes out of business.

"Credits" are in some cases more insidious than being sent physical goods, because they're less likely to be noticed. And you'd be surprised how slowly most people realize they've been subscribed to a service -- especially if the billing for that service is under a fairly innocuous-sounding or obscure name (as is often the case).

Paying "for one item in the first cycle and then cancel[ing]" is probably an exceptional case. I'd be willing to bet that it takes most users two, maybe even three or more cycles to notice and then break the subscription.

Yes, it's called "negative-option billing," as practiced by the Book of the Month Club, Columbia Record Club, and others.

buying stamps "on approval" predates all of these

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