http://www.justfab.com/how-justfab-works.htm
They have 2 million likes on Facebook. Were all these users scammed?
The "monthly subscription" has recently been a hot e-commerce category. Other sites with a similar model are shoedazzle.com, fabkids.com, musthave.popsugar.com and so on. See: http://www.quora.com/E-Commerce/What-are-the-most-interestin...
So a question is, what's the tradeoff between transparency & making it easy for the customer to cancel at any time, versus locking them in? Lots of businesses make money off of customer inertia where the easy path is to keep paying. Netflix, Tivo, your cable service, phone service, could all plausibly have much worse retention rates if they actively asked you each month if you want to continue paying. Additionally, my cable company certainly isn't going to tell me when my one-year promotional rate is expired and my rate suddenly doubles. Does that make cable service a scam?
Beyond that, you are labeling the business a "scam" because you assert they are hiding the recurring payments from their users. Maybe so, but it would help to have data, rather than "wondering" how many users were unaware of the payments. When they become aware, does the company refund their money? Do they a/b test their signup process to optimize signups versus the later cancellation rate? I would certainly expect they do, and that they have a pretty specific idea of what their dissatistfied customer rate is, what the acceptable (non-zero) rate is for them, and how to avoid skyrocketing it while increasing their signups.
It's not a pretty business on those terms, but it's real, and plays on human behavior, both positive -- people like to receive new stuff in the mail every month, it's an addictive cycle for many -- and negative -- people sign up for stuff online without reading the fine print, or bothering to check their credit card statements.