Offerpal runs an affiliate and lead generation network that mainly operates on facebook games and the like – linking developers with monetisation via affiliate programs, virtual goods and so on.  They have also moved into mobile with an offering to help iphone developers monetise their apps and sites through affiliate offers.  Unfortunately, it seems that they have had a few problems with premium sms subscription services using the channel to trick people into signing up.

Techcrunch has rapidly picked up on this and has forced Offerpal to pull the plug on its mobile affiliate PSMS offers.

“In the interest of being conservative and wanting to operate in the best interests of the collective mobile user experience, we have immediately removed the quizzes in question and any offers resulting in PSMS subscriptions from distribution pending a further review.”

To some extent this is the return of something terrible on mobile – scammy subscription services which brought the first generation of mobile commerce (ringtones) to its knees.  It has taken the industry nearly half a decade to build back consumer confidence in mobile to the point where people are happy to pay for things again on their phone or give their number.   The last thing we need is the return of Crazy Frog Mark 2 in a new form – this could set the industry right back to 2005 again.   The regulators need to avoid being caught napping like this – it shouldn’t be the job of techcrunch to expose this type of sharp practice.

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