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Re: Bookhabit
The only real thing that this whole process showed was feigned naivety. Take any structure with defined boundaries and apply a liberal dose of human nature and the result is usually quite predictable. Particularly for those running the competition. I just can’t accept that they didn’t see this issue from the start.
As an outsider looking in on this whole issue (not an author, haven’t read any of the books in question) I just can’t believe that people making money off books and a liberal dose of “the internets” didn’t “get it” in about 10 seconds flat. So I really do think that the whole idea here was “quick lets offer a cash reward and convert all of those author’s fan bases into our fan bases”, and it was quite cynically applied.
Then the problem occurred, its a little bit like non targeted web advertising (which by the way doesn’t make money and is part of the reason why google dominates this space). People were looking for a way to fan squee all over their favourite authors, and your page rank was getting boosted beyond all your expectations. Incoming links abound and your member count soared! But you didn’t benefit…they didn’t buy anything. They “searched” for “rabid fandom promotion” and you offered them not merchandise for a fandom, but unrelated books by unrelated authors. All of a sudden your $0.25/user/month business model with which you got your startup money from your generous friend with the cats is blown out of the water. You’ve tripled your member based but your revenue per member ratio has died!
Lets recap.
1. You created a system that hugely encouraged people to signup just vote just for their fan author.
2. You place no restrictions on signups and votes either in the rules or in the mechanics of your site.
3. You pretend to be surprised when people “game” your system. Game is awarded inverted commas in this instance because given that you created both the physical restrictions (coding) and the moral restrictions (game rules), both of the above really are entirely valid.
And in regards to point three. I believe that you operate from NZ.
Not that I care, I’ve got other legal battles to fight at the moment, but you might want to check the probity portions of the Fair Trading Act 1986 sections 17 (a)(b), 22(1)(2)(b).
Your real problem here is that because you are in a standing commercial arrangement with each of the contestants and money is changing hands they now have tortial remedies available to them.
As a general precedent in Aus (admittedly this potentially differs in NZ) courts won’t award damages for losing the “chance” to win a prize unless it is a defined % win chance. However deceptive or misleading conduct will still stick, and given the staggered nature of the contest you might also be less protected.
But opening a web shop, dealing with matters like copyright and cash prizes I’m sure you’ve already spoken to a lawyer, just like you saw exactly what the outcome of your competition was going to be with regards to thousands of one time member/voters….right?