brainstorm ways the moxie robot thing might involve fraud:
- people expected a standalone product
- people probably didn’t expect it to be a subscription-style service where their use of the product they bought depended on the maintenance of the business
- they thought they were paying ~$800 for the robot and the service it provides, not $800 for a means to accessing a service which might go offline.
- Afaik, they didn’t offer to compensate any customers.
- The age range for the kids is 5-10, implying that you might use it for your 5 year old child until they’re 10, but the company didn’t even last four years. So people might have expected at least 5 years of use out of it (?)
- The product page, only mentions the concept ‘cloud-based’ once, and only in reference to one aspect of the software it uses. It also only mentions that it requires wifi access in the specs, and doesn’t say why. The fact that it relies on a wifi-connection for all functionality I don’t think is very obvious. I think it’d be reasonable to get the impression that it was for the most part a standalone unit.
- what’s fraud?
- deception for the purpose of gaining a value
- this isn’t specifically fraud though, I think fraud is about financial gain/harm?
- misrepresenting reality for the purpose of financial gain
- this is better, but maybe just lying will do
- lying for the purpose of financial gain
- okay I also don’t think that it needs to be intentional
- lying which causes financial gain
- I also think it can be the result of negligence, or recklessness
- negligence or lying which results in financial gain
Hmm. I think it needs to capture that it harms the person being defrauded
- brainstorm elements of fraud
- deception
- financial gain
- personal gain (?)
- financial loss for victim
- recklessness with regard to truth
- intentional (?)
- lying
- false advertising
- not living up to your claims
I think deception +/OR recklessness + financial gain + financial loss for victim = fraud
- look up meanings
Google dictionary:
wrongful or criminal deception intended to result in financial or personal gain.
This includes the concept of intent (which I suspect isn’t necessary for fraud)
Websters 1913:
Deception deliberately practiced with a view to gaining an unlawful or unfair advantage; artifice by which the right or interest of another is injured; injurious stratagem; deceit; trick.
The first one has the concept of intent: “practised with a view to gaining…advantage”. Also unlawful advantage. I don’t think fraud is just a legal concept though.
The second one doesn’t have the concept of intent: artifice by which another’s rights are injured. I like that one.
Ayn Rand —Ayn Rand Lexicon :
Fraud involves a similarly indirect use of force: it consists of obtaining material values without their owner’s consent, under false pretenses or false promises.
This doesn’t have the concept of intent. In this one it is the fact of obtaining material values under false pretence (and therefore without their owner’s consent), that makes it fraud.
So I think fraud differs from theft in that instead of using physical force to violate consent and obtain material values, consent is violated by the false pretenses (they consented to a non-existent situation which you caused the appearance of existing) or false promises (obligations, or conditions that they expected you to meet)
Rand’s one refers to obtaining material values. This is better than just financial gain, because one could obtain stock or property, or any other physical goods by fraud too.
I think this is the best one.
I think I was wrong when I said:
- deception for the purpose of gaining a value
- this isn’t specifically fraud though, I think fraud is about financial gain/harm?
I think it’s the deception part that differentiates fraud from theft.