CloudAtCost Turning to Extortion
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CloudAtCost aka Cloud@Cost which promised free servers for life for a one time fee didn't make it two years before they have declared everyone "dead" and is now, as of this morning, charging a yearly "maintenance fee" for the hosted servers that everyone has already paid for. This is, of course, no different than simply charging for the severs which people already own. Every cloud vendor charges a monthly or yearly maintenance fee, the one time up front payment with "paid for life" benefits was explicitly for the singular purpose of not needing to pay again. So this is 100% the same as terminating the "free for life" service, and holding the existing VMs of customers for ransom. It is both outright contract violation, as well as theft, and shows that they acted in bad faith by selling customers a service without intention to deliver; and it is direct extortion by taking the data and services running on the VMs and holding them for ransom.
Cloud@Cost has moved from being a scam service to being an outright threat.
Not only is CloudAtCost doing this to existing customers, but their website continues to lie about offering a one time payment as what they sell while no even offering such a thing. They only offer annual cost options, but they don't tell you this until you are trapped and have already spent the money thinking that you were making a one time payment rather than one large up front balloon payment with annuals needed for forever.
CloudAtCost is part of Fibernetics.
Here you can see the claims of "one time" costs, but they are not one time at all.
So there is no possibility of mistake or claims that they had to correct bad decisions of the past (which is still illegal) but they are continuing to run the exact same scam on unsuspecting customers today.
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Need to get this info out on old threads. Sorry for the pending blast of links to older threads.
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After questioning a Bill Due, they closed my account.
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@gjacobse said in CloudAtCost Turning to Extortion:
After questioning a Bill Due, they closed my account.
Where "closed your account" means "took back the thing you had already paid for in full and didn't refund your money or return your stolen data to you."
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Shame lifetime turned into a yearly fee.
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@gjacobse said in CloudAtCost Turning to Extortion:
Shame lifetime turned into a yearly fee.
No access to view the page, care to take a screenshot?
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@DustinB3403 said in CloudAtCost Turning to Extortion:
@gjacobse said in CloudAtCost Turning to Extortion:
Shame lifetime turned into a yearly fee.
No access to view the page, care to take a screenshot?
Dashboard /Kb/Billing/Yearly Maintenance Fee
Yearly Maintenance FeeMay 17, 2017 0 comments
As you may already know, CloudatCost has updated their Terms of Service.Within this update, there has been an amendment to section 9, Account information,billing and payment.
The amendment is as follows:
9.18 Customers with a onetime payment service are subject to an annual maintenance fee of $9 which will be invoiced 12 months after using our service. This does not apply to users that have a monthly paid service. This Maintenance fee will ensure proper hardware upgrades and maintenance to reduce degradation of onetime payment services.
Below are some common questions that we have been receiving about this update.
Q: Why am I being charged this yearly fee, my packages all say one time?
A: This fee is not the same as your package setup fee, which is why it is not affected by the number of packages that you have purchased. This is a maintenance fee, that will go towards hardware replacement, as well as assist with the purchase of new hardware, which will improve performance and reliability.
Q: What benefit do I have as a customer of having this fee in place?
A: The revenue generated from this fee will be going towards hardware replacement, as well as additional hardware to expand our infrastructure. The largest benefit will be seen by customers with multiple packages. For a small fee from their investment of CloudatCost resources, they will see an improvement in system performance and reliability. Customers with only a single Developer CloudPRO1, may view the cost to benefit ratio as unprofitable, but the same benefits will be seen among all accounts regardless of size.
Q: Is this fee per account, per package, or per running instance?
A: This fee is issued once per account, per year, that have active one time Developer services. This feel is not applied to CloudStorage, or cPanel one time payment packages. It is only going to be applied to services available through panel.cloudatcost.com (Developer, Developer CloudPRO, BigDog, etc)
Q: What happens if I do not agree to the Terms or Service
A: If you do not agree, you will not be permitted to use services available at panel.cloudatcost.com. Agreeing the the Terms of Service is required to use our services.
Q: What if I found a way to use my services without agreeing to the Terms of Service, can you still legally charge me?
A: Yes, circumventing intended use is a violation of our Terms of Service, and is grounds for termination. However, our Terms of Services also state, "EACH TIME THE CUSTOMER USES THIS SITE OR THE SERVICES, THE CUSTOMER ACKNOWLEDGES THAT IT HAS READ, UNDERSTOOD, AND AGREES TO BE BOUND BY THESE TERMS AND CONDITIONS OF USE".
Q: If I don't agree to the Terms of Service, will my packages eventually be cancelled?
A: No, not agreeing to the Terms of Service, will not cancel your packages. However you will not be able to use the services until you do agree. When you agree, all of the services that you have paid for, will be available for your use.
Q: What if I agree to the Terms of Service, but don't pay the fee when it is issued?
A: If you do not pay the yearly fee, your services will eventually go into a suspended state and access will be disabled. Paying the fee will put your account back into an active state, where you will be able to use your services again.
How helpful was this article to you?
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@gjacobse said in CloudAtCost Turning to Extortion:
Q: What if I found a way to use my services without agreeing to the Terms of Service, can you still legally charge me?
A: Yes, circumventing intended use is a violation of our Terms of Service, and is grounds for termination. However, our Terms of Services also state, "EACH TIME THE CUSTOMER USES THIS SITE OR THE SERVICES, THE CUSTOMER ACKNOWLEDGES THAT IT HAS READ, UNDERSTOOD, AND AGREES TO BE BOUND BY THESE TERMS AND CONDITIONS OF USE".haha. . .
Yeah... I'm never using CloudAtCost
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@DustinB3403 said in CloudAtCost Turning to Extortion:
@gjacobse said in CloudAtCost Turning to Extortion:
Q: What if I found a way to use my services without agreeing to the Terms of Service, can you still legally charge me?
A: Yes, circumventing intended use is a violation of our Terms of Service, and is grounds for termination. However, our Terms of Services also state, "EACH TIME THE CUSTOMER USES THIS SITE OR THE SERVICES, THE CUSTOMER ACKNOWLEDGES THAT IT HAS READ, UNDERSTOOD, AND AGREES TO BE BOUND BY THESE TERMS AND CONDITIONS OF USE".haha. . .
Yeah... I'm never using CloudAtCost
"Our Ts and Cs have changed so that we can try to extort money from everyone who visits our site. Would you like some info on our premium plans?"
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@DustinB3403 said in CloudAtCost Turning to Extortion:
@gjacobse said in CloudAtCost Turning to Extortion:
Q: What if I found a way to use my services without agreeing to the Terms of Service, can you still legally charge me?
A: Yes, circumventing intended use is a violation of our Terms of Service, and is grounds for termination. However, our Terms of Services also state, "EACH TIME THE CUSTOMER USES THIS SITE OR THE SERVICES, THE CUSTOMER ACKNOWLEDGES THAT IT HAS READ, UNDERSTOOD, AND AGREES TO BE BOUND BY THESE TERMS AND CONDITIONS OF USE".haha. . .
Yeah... I'm never using CloudAtCost
HAHA
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@RojoLoco said in CloudAtCost Turning to Extortion:
@DustinB3403 said in CloudAtCost Turning to Extortion:
@gjacobse said in CloudAtCost Turning to Extortion:
Q: What if I found a way to use my services without agreeing to the Terms of Service, can you still legally charge me?
A: Yes, circumventing intended use is a violation of our Terms of Service, and is grounds for termination. However, our Terms of Services also state, "EACH TIME THE CUSTOMER USES THIS SITE OR THE SERVICES, THE CUSTOMER ACKNOWLEDGES THAT IT HAS READ, UNDERSTOOD, AND AGREES TO BE BOUND BY THESE TERMS AND CONDITIONS OF USE".haha. . .
Yeah... I'm never using CloudAtCost
"Our Ts and Cs have changed so that we can try to extort money from everyone who visits our site. Would you like some info on our premium plans?"
The ToS might as well say "BY READING THIS TOS AGREEMENT YOU AGREE TO EVERYTHING WE MAY EVER WANT"
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@DustinB3403 said in CloudAtCost Turning to Extortion:
@RojoLoco said in CloudAtCost Turning to Extortion:
@DustinB3403 said in CloudAtCost Turning to Extortion:
@gjacobse said in CloudAtCost Turning to Extortion:
Q: What if I found a way to use my services without agreeing to the Terms of Service, can you still legally charge me?
A: Yes, circumventing intended use is a violation of our Terms of Service, and is grounds for termination. However, our Terms of Services also state, "EACH TIME THE CUSTOMER USES THIS SITE OR THE SERVICES, THE CUSTOMER ACKNOWLEDGES THAT IT HAS READ, UNDERSTOOD, AND AGREES TO BE BOUND BY THESE TERMS AND CONDITIONS OF USE".haha. . .
Yeah... I'm never using CloudAtCost
"Our Ts and Cs have changed so that we can try to extort money from everyone who visits our site. Would you like some info on our premium plans?"
The ToS might as well say "BY READING THIS TOS AGREEMENT YOU AGREE TO EVERYTHING WE MAY EVER WANT"
Pretty much all agreements say that these days.
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@RojoLoco said in CloudAtCost Turning to Extortion:
@DustinB3403 said in CloudAtCost Turning to Extortion:
@gjacobse said in CloudAtCost Turning to Extortion:
Q: What if I found a way to use my services without agreeing to the Terms of Service, can you still legally charge me?
A: Yes, circumventing intended use is a violation of our Terms of Service, and is grounds for termination. However, our Terms of Services also state, "EACH TIME THE CUSTOMER USES THIS SITE OR THE SERVICES, THE CUSTOMER ACKNOWLEDGES THAT IT HAS READ, UNDERSTOOD, AND AGREES TO BE BOUND BY THESE TERMS AND CONDITIONS OF USE".haha. . .
Yeah... I'm never using CloudAtCost
"Our Ts and Cs have changed so that we can try to extort money from everyone who visits our site. Would you like some info on our premium plans?"
I don't think that Ts and Cs can apply to things already sold. That's like Chevy coming into your garage and repo'ing your car after you completely paid it off and have owned it for years.
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@DustinB3403 said in CloudAtCost Turning to Extortion:
@RojoLoco said in CloudAtCost Turning to Extortion:
@DustinB3403 said in CloudAtCost Turning to Extortion:
@gjacobse said in CloudAtCost Turning to Extortion:
Q: What if I found a way to use my services without agreeing to the Terms of Service, can you still legally charge me?
A: Yes, circumventing intended use is a violation of our Terms of Service, and is grounds for termination. However, our Terms of Services also state, "EACH TIME THE CUSTOMER USES THIS SITE OR THE SERVICES, THE CUSTOMER ACKNOWLEDGES THAT IT HAS READ, UNDERSTOOD, AND AGREES TO BE BOUND BY THESE TERMS AND CONDITIONS OF USE".haha. . .
Yeah... I'm never using CloudAtCost
"Our Ts and Cs have changed so that we can try to extort money from everyone who visits our site. Would you like some info on our premium plans?"
The ToS might as well say "BY READING THIS TOS AGREEMENT YOU AGREE TO EVERYTHING WE MAY EVER WANT"
Except nothing changes "bad faith".
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Lol wow... good thing I don't use small-name cloud services to save pennies.
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@Dashrender said in CloudAtCost Turning to Extortion:
@DustinB3403 said in CloudAtCost Turning to Extortion:
@RojoLoco said in CloudAtCost Turning to Extortion:
@DustinB3403 said in CloudAtCost Turning to Extortion:
@gjacobse said in CloudAtCost Turning to Extortion:
Q: What if I found a way to use my services without agreeing to the Terms of Service, can you still legally charge me?
A: Yes, circumventing intended use is a violation of our Terms of Service, and is grounds for termination. However, our Terms of Services also state, "EACH TIME THE CUSTOMER USES THIS SITE OR THE SERVICES, THE CUSTOMER ACKNOWLEDGES THAT IT HAS READ, UNDERSTOOD, AND AGREES TO BE BOUND BY THESE TERMS AND CONDITIONS OF USE".haha. . .
Yeah... I'm never using CloudAtCost
"Our Ts and Cs have changed so that we can try to extort money from everyone who visits our site. Would you like some info on our premium plans?"
The ToS might as well say "BY READING THIS TOS AGREEMENT YOU AGREE TO EVERYTHING WE MAY EVER WANT"
Pretty much all agreements say that these days.
Legally though it can't. Contracts have to have exact terms as to who is responsible for what. Not everything that may occur.
I could write in a ToS that anytime I walk by someone with orange juice, they have to give it to me because I'm within arms reach of them.
Doesn't make it legal.
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@scottalanmiller said in CloudAtCost Turning to Extortion:
@RojoLoco said in CloudAtCost Turning to Extortion:
@DustinB3403 said in CloudAtCost Turning to Extortion:
@gjacobse said in CloudAtCost Turning to Extortion:
Q: What if I found a way to use my services without agreeing to the Terms of Service, can you still legally charge me?
A: Yes, circumventing intended use is a violation of our Terms of Service, and is grounds for termination. However, our Terms of Services also state, "EACH TIME THE CUSTOMER USES THIS SITE OR THE SERVICES, THE CUSTOMER ACKNOWLEDGES THAT IT HAS READ, UNDERSTOOD, AND AGREES TO BE BOUND BY THESE TERMS AND CONDITIONS OF USE".haha. . .
Yeah... I'm never using CloudAtCost
"Our Ts and Cs have changed so that we can try to extort money from everyone who visits our site. Would you like some info on our premium plans?"
I don't think that Ts and Cs can apply to things already sold. That's like Chevy coming into your garage and repo'ing your car after you completely paid it off and have owned it for years.
I hear ya - but T/C change all the time at different services I've used - like ebay and Paypal. But perhaps you're right - this is a sold product, the sale is done, finished, nothing else to do but use the product. In cases like this it's challenging, because it's not just a thing in your presence, it's something you're using that 100% depends on someone else to manage/maintain it. It would be an interesting legal challenge.
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@Dashrender said in CloudAtCost Turning to Extortion:
I hear ya - but T/C change all the time at different services I've used - like ebay and Paypal. But perhaps you're right - this is a sold product, the sale is done, finished, nothing else to do but use the product.
That's the thing. What they changed was the PRICE after the sale. The ENTIRE basis of that sale WAS the up front, one time price so that you owned the service after that point. So nothing like those other things where you have an ongoing relationship that can be severed at any point if you don't mutually agree to the new terms. They can't change the terms without your approval.
This is not changing the future terms, this is going back in time and changing your past price. It's literally selling you a product for any price that you can talk them down to... then having unlimited ability to charge you later whatever they want without negotiation.
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@Dashrender said in CloudAtCost Turning to Extortion:
It would be an interesting legal challenge.
I doubt it. It's clear breach of contract through intent to defraud. I don't think they'd even get to approach the bench with a T&S argument.
