Freecash, the mobile app that promised users a whopping $35 an hour for simply watching TikTok videos on their "For You" page, is not quite what it seems. Despite its catchy slogan and enticing claims, Freecash's business model relies heavily on matching new users with mobile games, where they are encouraged to spend money in exchange for rewards.
The app itself doesn't pay out money directly to users who watch TikTok videos. Instead, users are directed to download multiple mobile games, such as Monopoly Go and Disney Solitaire, which promise cash rewards for completing challenges within a limited time frame. The rewards range from pennies to hundreds of dollars, depending on the challenge.
However, users must also spend money in these games to reach certain milestones or levels, where they can earn more substantial rewards. This is despite Freecash's CEO, Moritz Holländer, stating that if an app had data about a user's spending habits, it wouldn't match them with games that stray from their preferred genres.
This practice has raised concerns among consumer advocates and technologists, who warn that users may be exploited through manipulative marketing tactics that rely on personal data. The Electronic Frontier Foundation's Lena Cohen notes that some data brokers sell lists of people susceptible to scams or addictive online gaming, which Freecash claims to collect about its users.
In an effort to distance itself from misleading ads promoting the app on TikTok, Freecash's parent company has stated that it did not produce the ads in question and is reviewing activity with relevant partners. However, some have questioned whether this is merely a PR stunt to deflect responsibility.
One thing is clear: Freecash's claims about not being involved in misleading marketing are questionable, and users should be cautious when downloading apps like this one. As Eden Iscil, senior public policy manager at the National Consumers League, notes, "Ultimately, the responsibility lies with the advertiser."
The app itself doesn't pay out money directly to users who watch TikTok videos. Instead, users are directed to download multiple mobile games, such as Monopoly Go and Disney Solitaire, which promise cash rewards for completing challenges within a limited time frame. The rewards range from pennies to hundreds of dollars, depending on the challenge.
However, users must also spend money in these games to reach certain milestones or levels, where they can earn more substantial rewards. This is despite Freecash's CEO, Moritz Holländer, stating that if an app had data about a user's spending habits, it wouldn't match them with games that stray from their preferred genres.
This practice has raised concerns among consumer advocates and technologists, who warn that users may be exploited through manipulative marketing tactics that rely on personal data. The Electronic Frontier Foundation's Lena Cohen notes that some data brokers sell lists of people susceptible to scams or addictive online gaming, which Freecash claims to collect about its users.
In an effort to distance itself from misleading ads promoting the app on TikTok, Freecash's parent company has stated that it did not produce the ads in question and is reviewing activity with relevant partners. However, some have questioned whether this is merely a PR stunt to deflect responsibility.
One thing is clear: Freecash's claims about not being involved in misleading marketing are questionable, and users should be cautious when downloading apps like this one. As Eden Iscil, senior public policy manager at the National Consumers League, notes, "Ultimately, the responsibility lies with the advertiser."