They started work on and subsequently billed for something that was explicitly out of scope.
My guess is that the founder of the agency knew early on that he could push this client around to extract $.
An analogy here would be forcing the agency designers to completely delete any speculative redesign work, without any backups, to force them to focus on the logo, and send a strong signal that I don't care about the redesign, and won't be paying that work.
I think you're attributing malice to what was more than likely routine mismanagement.
I wouldn't call it mismanagement. Many agencies thrive despite regularly delivering these types of experiences. It's a conscious choice they can easily rationalize because of the money.
This agency turned a one off $7k job into $46k by smooth talking and scope creeping an actual developer. I'm sure they're absolutely killing it doing the same to non-technical folks.
TinyPilot is clearly successful and growing. Any smart agency would nurture that relationship, deliver a great product, and secure an ongoing relationship.
By contrast, there's a huge amount of reputational risk in allowing things to spiral. They've walked away with more today but imagine for a moment the damage that would have been done were they named in this article. It doesn't take much for a brand to turn toxic and things to implode.
There’s a big legal risk involved in doing so and no upside that I can see.
I would hope he could get some satisfaction in knowing that he might be able to stop them from taking advantage of clients in the future.
Management threw it out to the floor and the floor ran with it like every other job. Feedback went to management but the people doing the work didn't really understand that this client was not like their other projects.
I've been on the other side of this where one bigger client changed the game and we didn't adapt as we were used to things at a different scale. We didn't clean up the mess we inherited fast enough. We didn't put enough resources on the projects and we failed to live up to expectations. We were used to smaller tasks with more limited scope.
Those lottery phone scams out of Jamaica which target the elderly in the US are almost the exact same scam as what was described here.
Promise something, get them to send money, don’t deliver, tell them you need more time/more money. Keep repeating until the mark walks away.