FTC Pounds Hard Rishab Verma of OBEY
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FTC Pounds Hard Rishab Verma of OBEY

verma

It seems that if you have anything to do with Ryan Eagle, even showing up with him in photographs, you better run. Well, obviously this has nothing to do specifically with Ryan Eagle, but its still damn interesting. The FTC has sued Rishab Verma, known as the owner of OBEY for among other things, deceptive acts or practices.

According to the complaint,  Verma was involved in the “ending of unauthorized andunsolicited commercial electronic text messages to the mobile telephones and other wireless devices…”  claiming that the consumer had “won a contesat, or had specifically selected to receive a gift or prize.” Basically, the text messages were complete and utter bullcrap violating ever single FTC rule on “free” messaging, if the complaint is correct.

According to KBRC in Houston, Verma has already had some problems with the law:

In 2011, then 19-year-old Verma pleaded guilty five to felonies related to hacking into Fort Bend ISD High School computers to change student grades, attendance records and get teachers personal information. Verma is still on probation for those crimes, and Carpenter said Verma may well have violated the terms of that probation.

Not going to go into anymore details, as you can read the complaint, but it’s pretty obvious that the FTC is serious about going after Verma – including seeking all funds and monies that he’s made. Not a good time to be an OBEY affiliate.

Update: Obey.my has shut down their business, their website now reads “We are being sued by the FTC, and in order to cooperate we are immediately ceasing operations. For questions, please reach out to your dedicated affiliate manager.”

Written by 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.

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21 Comments

  • kj says:

    wasn`t it too quick ? FTC acted really fast

  • Fuck says:

    Fuck…. This is the first i’ve heard of it. Bad news, gonna go see what other affiliate networks there are

  • Fuck says:

    So does this mean Obey is fucked?

  • James Luvin says:

    LOL. Searched his name on google and found this:

    “His companies are all focused on a Cost Per Acquisition model where he uses his strong business ethics to develop close relationships with his marketers and achieves high volume and high quality sales.”

    http://www.peoplepond.com/rishabverma

  • TimAdsmade says:

    This is how publishers get screwed
    another round of Ryan eagle and garbage that will leave affiliates with nothing. People need to learn to put their traffic with legit players.

    levelupads.com
    obey.my
    wolfstorm

    all questioned

    last year AscendMedia.com got sued

    now we have the FTC going after OBEY
    once these big players get you on their radar you are on for life.

    Pace you are turning into the dark knight of the space. Keep this good work rolling. Its so good to have someone watching guard not just on the bad guys but pointint out good guys too!!!

    thx PMI!

  • GetIT Right says:

    WSM deffo not in this grouping…get your facts straight. JC has been very clear about this.

  • Vishnu says:

    Obey has shut down check the message on their site full of lolz

    One by one the FTC is taking this whole scamdustry down

    Nothing honest about affiliate marketing

  • uninformed person ^^^ says:

    Do you seriously not see the difference between affiliate marketing and spamming?

  • epicfail says:

    Seriously, do your homework. We only work with CPA networks that harass us (the affiliate) about our landing pages and ad copy. One of my favorite CPA networks has an open channel to the FTC and actively works with the FTC on a daily basis. They also frequently audit their affiliates for compliancy. This of course mainly applies to US-based advertising especially in risky niches.

    Also, I will not name this network in fear of all you numbnuts accusing me of “working for them”. Do some research and you’ll figure it out, they’re one of the biggest CPA networks.

  • ShaunH says:

    How is it possible people are still getting ripped off anyways?

    Like, are noobs or well entrenched affiliates sending to these scammy aff programs?

    I would never send away from affiliate.com, clickbooth, w4, millionaire, why are people sending to these single man mom&indian-pop shops?

    Like seriously people, how can you get scammed this day in age, do you also think you have 42 million waiting for you in Nigeria?

  • See that just the kind of thing that gives these moron’s room to say “nothing honest about affiliate marketing ” when you only hear about the few bad and nothing about the affiliates that are working there butts off doing things buy the book to feed their families.

    You just know that anyone who makes a statement like that definitely doesn’t make a living online.

  • Chris says:

    I’m looking to get back into CPA – can you recommend some good networks?

    I used to be with copeac, clickbooth and azoogle, now the only one left is clickbooth. I need some new networks.

    Someone help me out.. I don’t want to risk joining one of these retarded networks that will scam the affiliates and go bankrupt.

    Thanks

  • GoodGuy says:

    Copeac = Scam
    Clickbooth = Complete Scam
    Azoogle = ROFL

    You want to make money then here is the golden key.
    DO NOT WORK WITH ANY AFFILIATE NETWORK every single one of them are scams.

    Just advice from a veteran.

    Peace out!

  • Obey says:

    Looks like the FTC didn’t.

  • Rishab Verma says:

    His story was so short affiliates want their money back.

    Overall peasant, his partner Zakir was even worse.

    Affiliate marketers wannabes, nothing here.

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