Super Expensive Internet Kiosk Business Not Just Stupid, But A Scam

from the in-case-you-were-wondering dept

Wed, Oct 12th 2005 1:12pm — Mike Masnick

Late last year, we wrote about our surprise at seeing companies using late night infomercials to pitch buying into WiFi access terminals. Everything about the idea seemed stupid. It was basically a copy of the independent ATM business, where you were supposed to buy a $13,000 terminal which would be placed in some area, and any time someone paid to access the WiFi on the terminal, you'd get some money out of it. Of course, for anyone who's been following the WiFi business at all, this seemed like a bad business proposition. First off, there's no way such equipment should cost $13,000, even with its "impact resistant LCD monitor [and] anti-vandal and waterproof industrial keyboard." If you're placing these kiosks in a place where you fear such things, perhaps that's a suggestion that business might not be too strong for your internet access. We suggested at the time that it was unlikely that many would buy into such a deal, and were pretty sure that those who did were about to lose a lot of money. Well, it seems the FTC has agreed and has shut down the company involved as a scam. Not only were their infomercial promises bogus (unlimited income potential?), the company often just took the person's money without actually delivering one of these spiffy kiosks. In cases where the kiosks were installed they were (surprise, surprise) rarely, if ever, used. While it's pretty clear that this was a scam, you still have to wonder about those who got taken in by it. How hard would it be to do even the slightest amount of research to understand that this was a bad bet from the start?

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10 Comments

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Etchy, 12 Oct 2005 @ 2:44pm

No Subject Given
I was wondering why I never saw any of these around...

I've also seen this scam with a machine that apparently did the same thing with DVD rentals. I wonder if it's the same company.
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- Chris, 12 Oct 2005 @ 3:09pm
  
  Re: No Subject Given
  Ya, i saw those DVD rental commercails too. Couldn't you "rent" it from the kiosk but just keep it? No one would know, I always laughed at those commercials.
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- Ross, 12 Oct 2005 @ 3:46pm
  
  Re: No Subject Given
  My university has a DVD rental kiosk that is very popular and heavily trafficked. Although, I doubt a kiosk would work except for targeted audiences like a university, apartment complex, or agropolis (Sim City 2000, anyone?)
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  - Dean, 12 Oct 2005 @ 4:41pm
    
    dvd rental
    The DVD rental stuff is wildly popular in Japan (but then again, you can get darn near anything from vending machines in Japan...even live lobsters), and I imagine it would be more popular here too if you could actually find them in places like grocery stores or gas stations.
    
    For the other poster that thought you'd be able to keep the DVD... They have your credit card number, and would probably charge you if you didn't give it back. It might even charge you full price to begin with, and then offer most of it back (except two or three dollars, for the rental fee) when you returned it.
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  - Jason, 12 Oct 2005 @ 6:21pm
    
    DVD
    Our grocery stores here have the DVD kiosk, we use it all the time. $1.00 plus tax each night you have it and if you do keep it will charge you after a week or two. Great deal if you can live with it not having the DVD you want that day.
    
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bmaclin99 (profile), 12 Oct 2005 @ 2:51pm

Internet Kiosk
I started seeing hard-wired Internet kiosks in gas stations and grocery stores a couple of years ago, and I have actually witnessed one in use (just that once, though). I wonder how much those cost and whether the purchaser will ever see his cost repaid?
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Anonymous Coward, 12 Oct 2005 @ 4:16pm

No Subject Given
I just met a guy who lost between 30 and $60K trying out the Internet Kiosk business.
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Dean, 12 Oct 2005 @ 4:37pm

Unlimited income potential
Well, sure the income is potentially unlimited. It's also potentially zero.

I feel really sorry for the folks that fell for this scam.
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locutuss, 12 Oct 2005 @ 7:37pm

Drunken Batman??
I wonder if this is the same outfit that had a very well-alcoholed Adam West as a spokesperson saying "You don't have to be a superhero to get super drunk.." or something to that effect..
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J.J., 31 Jan 2008 @ 3:53pm

Kiosk business
Anyone gets a "opportunity" from extremekiosks.com will get scammed!!!
This dodgy company is cruising around eastern Canada right now. Leave your emotions locked up in box and do your du-diligence.
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