US watchdog raps breach-of-contract brats for retracted transacts
Defunct mobile app company Pact broke its pact with customers to pay them promised cash incentives, US trade watchdog the FTC said on Thursday.
According to the FTC, the Khosla Ventures-funded startup was incorporated in Delaware and, the last time anyone checked, based in Seattle, Washington.
The agency filed a complaint against Pact and its two co-founder executives – Yifan Zhang, CEO, and Geoffrey Oberhofer, COO – and simultaneously announced details of a settlement.
From about 2012 until this summer, the company peddled a mobile app, originally called GymPact and by 2014 just Pact, that aimed to encourage users to meet fitness and nutrition goals.
Those who failed to meet their pacts agreed to be charged automatically some amount in the range of $5 to $50, while those who succeeded in meeting their goals were to receive a share of the failure funds, with Pact collecting the remainder.