NY Wrests $1 Million From Verizon Wireless 218
netbuzz writes "Unlimited really means unlimited, even in advertising. So says the New York State Attorney General's Office in squeezing a $1 million settlement out of Verizon Wireless for disconnecting 13,000 of its customers who had the temerity to believe that the unlimited service they were promised came with unlimited service. Verizon's statement explaining the settlement is a gem, too."
Oh, wow (Score:2, Funny)
Re:Oh, wow (Score:5, Insightful)
Re:Oh, wow (Score:4, Insightful)
Re:Oh, wow (Score:5, Informative)
Canadian class action $500 per cell phone user (Score:2)
http://www.cbc.ca/technology/story/2007/09/19/tech-cellphones.html [www.cbc.ca]
And yes, the money will go to the individual users. If this works, I should be getting about $1200 in another 5 years (because that's how long it will take to go through the courts, appleas, etc).
And those are Canadian dollars to boot !!! w00t!
Re:Oh, wow (Score:5, Informative)
First, judicial efficiency: encourage binding settlement of disputes between large numbers of people (having lawyers profit from such settlements encourages lawyers to do this; it's capitalism);
Second, access to justice: provide remedy to those who would have no access to justice (even if that remedy is itself quite small);
Three, feedback: modify corporate behaviour.
While $80.00 per person appears minor, one would hope that a multi-million dollar settlement is relevant to modifying corporate behaviour (which is often dependent on the tax implications to the company of such a settlement). So while the individual remedy is meager, there is other value provided: resolving a large number of outstanding disputes (which would be prohibitively expensive to remedy individually, for the company or for those individuals), and it establishes boundaries for corporate behaviour.
So while the lawyers do profit, it is my belief that profit is both incidental and necessary to the predominant purpose of effective class action regimes. Mind you, profiteering (night champerty) is poor form, and while the lawyers ought to be entitled to a respectable profit for their efforts (as in all capitalistic efforts), the fees taken ought to be scrutinized based on the work done (difficulty, expertise, time, etc.) and the actual value provided to the class. While I've presented value in class actions above, you've highlighted one of the cornerstones of principle conflict in the regime: the conflict of interest between class members and their legal representation when it comes time to pay the lawyers. I believe the courts ought to approve the fees after the settlement, with the input of an appointed amicus curae who would represent the interests of the class as against their own lawyers.
Re:Oh, wow (Score:5, Insightful)
The settlement was ONE million dollars. That's a drop in the bucket compared to the http://investor.verizon.com/profile/overview.aspx [verizon.com] 88.1 billion they did in revenue last year, which they'll likely surpass this year.
That's 1/88,100 of their revenue. For comparison, if you're somewhere around the GDP per capita at PPP of the US at $40k per year, that's like charging you 45cents as a fine. Yeah, that's really going to modify some behavior.
The only people that got any real benefit from this situation were lawyers. Verizon isn't going to stop cutting off accounts that don't make money for them.
Re:Oh, wow (Score:5, Insightful)
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Instead, imagine that you receive 2 or more such mass mailings: law firm 1 promises to seek an $80 refund
Comment removed (Score:5, Funny)
Re:Oh, wow (Score:5, Funny)
Apparently IANARS. (I am not a rocket scientist)
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Re:Oh, wow (Score:5, Informative)
IAAL but I try to be a person also.
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One problem with having two law firms working on the same action is that the lawyers cannot guarantee an outcome. One cannot say guarantee $80, the other $100, until a settlement has been reached. In fact, you have to agree to be part of the class of one firm or the other before you know how much you'd get
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Judges ultimately decide the class-action's outcome and that determines what actual compensation the class can possibly hope to get, class-action lawyers only need to do business as usual: do their
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4) Publicity for the New York State Attorney General's Office.
These sorts of suits got Eliot Spitzer the governorship, no reason for the A.G. to stop now.
And don't they know by now you're supposed to demand one BILLION dollars?
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I guess that depends on how you look at class actions. If you look at them as a way for the victims to be compensated for their financial losses, then they aren't beneficial. If you look at them as a way for a group of people to punish a company when the government fails to do so, they're great. With the Justice Department under its current management, there is very little recourse that a consumer has against a misbehaving coroporation, and class
The US needs class action lawsuits (Score:2)
* cf. John Edwards
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The verizon TOS is why I use Sprint. I can't get DSL, cable or even FIOS - I'm one of 2 homes on a street, and the companies don't want to lay half a mile of cable (from either direction) to get to us. My 60kB cellmodem is better than dialup.
When Sprint says "unlimited data" on my cellmodem plan, they actually mean it.
My net research revealed too many people who'd been bit by Verizon's bad habits. Glad to see the courts have spanked them.
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cause dialup is 56Kb/sec... and for 60$ you could get 2 phone lines and 2 accounds and shotgun for 113Kb/sec
(god it has been a while sence i have thought about shotgunning ras connections.. ahhhh)
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I'll be a lot of wireless customers wish they could welch on their service contract and only get hit for $80.
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Slimy response from Verizon (Score:2)
"We are pleased to have cooperated with the New York Attorney General and to have voluntarily reached this agreement," a company spokesman told Associated Press. "When this was brought to our attention, we understood that advertising for our NationalAccess and BroadbandAccess services could provide more clarity."
Assumed Guilt (Score:5, Informative)
Data Plans and Features (such as NationalAccess, BroadbandAccess, GlobalAccess, and certain VZEmail services that do not include a specific monthly MB allowance or are not billed on a pay-as-you-go basis) may ONLY be used with wireless devices for the following purposes: (i) Internet browsing; (ii) email; and (iii) intranet access (including access to corporate intranets, email, and individual productivity applications like customer relationship management, sales force, and field service automation). These Data Plans and Features MAY NOT be used for any other purpose. Examples of prohibited uses include, without limitation, the following: (i) continuous uploading, downloading, or streaming of audio or video programming or games; (ii) server devices or host computer applications, including, but not limited to, Web camera posts or broadcasts, automatic data feeds, automated machine to-machine connections or peer-to-peer (P2P) file-sharing; or (iii) as a substitute or backup for private lines or dedicated data connections. This means, by way of example only, that checking email, surfing the Internet, downloading legally acquired songs, and/or visiting corporate intranets is permitted, but downloading movies using P2P file-sharing services and/or redirecting television programming content for viewing on laptops is prohibited. A person engaged in prohibited uses continuously for one hour could typically use 100 to 200 MB, or, if engaged in prohibited uses for 10 hours a day, 7 days a week, could use more than 5 GB in a month.
For individual use only and not for resale. We reserve the right to protect our network from harm, which may impact legitimate data flows. We reserve the right to limit throughput speeds or amount of data transferred, and to deny or terminate service, without notice, to anyone we believe is using one of these Data Plans or Features in any manner prohibited above or whose usage adversely impacts our network or service levels. Anyone using more than 5 GB per line in a given month is presumed to be using the service in a manner prohibited above, and we reserve the right to limit throughput speed or immediately terminate the service of any such person without notice. We also reserve the right to terminate service upon expiration of Customer Agreement term.
Verizon Wireless Plans, Rate and Coverage Areas, rates, agreement provisions, business practices, procedures and policies are subject to change as specified in the Customer Agreement.
They now have a site [verizonwireless.com] defining acceptable use.
So they really haven't learned their lesson. I personally think that CmdrTaco should sign up and start hosting Slashdot through it. Either that or point the loyal readers to a page he's hosting through it.
I would recommend prospective customers of Verizon to think twice and assess if they want to sign contracts with a company so inclined to assume a user of the service is guilty of copyright violations just because of the amount of data they are transferring. Couldn't someone watching YouTube all day or streaming video from another TV network site rack up this sort of data transferring?
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So they really haven't learned their lesson. I personally think that CmdrTaco should sign up and start hosting Slashdot through it. Either that or point the loyal readers to a page he's hosting through it.
Perhaps they think they've learned their lesson - but they think the lesson isn't "Do what's right" to you and me, but rather "How can we make our business plan legally defensible?"
Seems if they get a lot more specific, then they'd have a greater chance defending it in court.
And if all of us geeks go over to other carriers, will Verizon notice? We're a pretty small minority.
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Somebody using more than 5 GB is at the high end of the curve, likely costing verizon more than what they're paying; increasing costs for other users of the service.
Yes, a business has a right to at least attempt to make a profit. They shouldn't be required to sell money-losing products.
What they rightly got slapped for is false advertising - A service with a 5GB cap isn't 'unlimited' by any standard def
Re:Assumed Guilt (Score:4, Informative)
Which part of FALSE ADVERTISING don't you understand?
No one is trying to deny them a profit. Create a "restricted" package, advertise it as such, and sell it at the current price. But for people who want/need a faster connection, charge them more. However what they are currently doing is FRAUD. They are telling customers that they have "UNLIMITED" access when clearly there are very concrete, defined limits both in the TOS and in practice. So instead of either 1) admitting that they are lying in their commercials or 2) investing in more infrastructure to improve congestion on the network, they decide to use "traffic shaping", packet sabotage (if Comcast can do it I'm sure Verizon can), download limits etc WITHOUT informing the customer. That's not right.
This "settlement" is not right either. It's a tap (not even a slap) on the wrist.
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Not Verizon? Well, no one else has coverage... (Score:2)
It's all very well to try that, but I can't in good conscience recommend against Verizon for the friends & family I support, knowing what I know of the coverage of every other cell carrier in my area.
Get some real competition on coverage, then we'll talk.
Dan Aris
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I would recommend prospective customers of Verizon to think twice and assess if they want to sign contracts with a company so inclined to assume a user of the service is guilty of copyright violations just because of the amount of data they are transferring. Couldn't someone watching YouTube all day or streaming video from another TV network site rack up this sort of data transferring?
Yes. And add to that people transferring files from the company intranet to the laptop, or receiving many large attachments via e-mail. Even some music nut with a lot of money to spend on song downloads could buy 20 songs a day for 30 days and use 2.4GB of bandwidth just for that, not counting the rest of the surfing they do.
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20 songs a day, assuming five minutes per song, is 1 hour 40 minutes. Not undoable.
However, assuming $3/song, is $1.8k, which is quite a lot of money.
Now, if it's a service where you can redownload previously purchased music, now you have a point.
Customer X, for whatever reason, has over 2k songs in his account. He lost his computer, replaced it, so he's redownloading his music. There goes that 5gig limit.
Although you'd run into their 'not to
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Nowhere does it say that. They make no mention of copyrights. The prohibted uses:
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Anyone using more than 5 GB per line in a given month is presumed to be using the service in a manner prohibited above
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5G? What a joke. I was concerned a few months ago when I deliberately exceeded the bandwidth cap my provider put on my internet. It was specified when I signed up that it was 50G/month. I downloaded 100G of data in about a week.
All data was downloaded from a Canadian Government website and was all perfectly legal and legit. (300dpi, calibrated maps of Canada at 1:50000 Scale)
I decided to double-check the bandwdith cap, and was pleasantly suprised to see that on my level of service it was doubled to 100G at
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From another perspective, unlimited is not really unlimited anyway because only a certain amount of bandwidth is available to you at any given time. Wireless system
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Nowhere in the prohibited uses dows it make mention of copyright. Nowhere. This is why I requoted the prohibited uses.
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I think you interpreted what you wanted to ...
I'm a human being, I have faults, this is precisely what I did.
For once a company is taking steps (though forced to do so) to limit the extent to which they oversell bandwidth.
That's odd, when I read the article, I didn't see the part where Verizon stepped up and admitted they were wrong and asked for forgiveness. In fact, it kind of sounded like they were actually part of the solution. Once I read the details, it was those evil filesharers that did this. Those P2P users who are just automatically guilty if they reach a certain point.
I don't think Verizon is taking any responsibility here at all. It reeks o
Low barriers to guilt (Score:2)
So download OpenOffice [openoffice.org] twice in an hour and you are busted. Nice! Glad I don't use Verizon.
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jumping to conclusions (Score:2)
That's not what they are assuming. What they are assuming is that you violate terms like "[prohibited activities:] (i) continuous uploading, downloading, or streaming of audio or video programming or games".
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Holy crap, that's messed up. Let me count the ways you can't use your Internet connection:
/sarcasm)
(1) No Nintendo Wii, XBox 360, or PS3 (you bad person!)
(2) No legally purchased music from iTunes or [Doesn't]PlayForSure service.
(3) No legally watching television or movies from iTunes, Vongo, or MovieLink. (why oh why would you want to do that?
(4
No WoW (Score:2)
You'd actually break 2 of their not-to-be-used rules with that one. One for the fact you're playing a 'streaming' (client-server model) game, and the other for usage of a P2P program (WoW updates through P2P).
The 5GB limit would also severely impact me doing any work for the company through that sort of link, since a backup of a database for installation on a test machine would already get to over 15G. So I wouldn't even be able to do that once.
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Yeah, I'd totally want to upload a 15GB database through my cell phone.
Those links are finally fast enough to be useful, but the amount of bandwidth available is tiny tiny fraction of what they can do on broadband, and their ability to increase wireless bandwidth is prett
Not just cell phones (Score:3, Interesting)
MOD PARENT DOWN (Score:5, Insightful)
So much for... (Score:2)
Still want to.
So much for Verizon when my contract ends in a couple months.
Does AT&T have an affordable deal on a 4-way (2 iPhones, 2 notebooks, 1 bill) unlimited (actual, not a paltry 5GB limit) data plan?
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Mandriva 2008.0 ISO - 4.7 GB.
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Spin doctors (Score:2, Funny)
One million dollars? (Score:5, Funny)
Sheesh.
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Here we go. Fixed that for ya...
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That's becuase on
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Please oh please... (Score:3, Interesting)
They thrive on blatantly lying to the customer, Unlimited internet, unlimited calling, unlimited this that the other... they know they are lying. they need to be spanked hard and forced to not lie.
RTFA (Score:2)
Petty cash (Score:5, Interesting)
What Verizon did, from TFA, was FRAUD plain and simple. Their CEO and board of directors should be in prison, not made to take petty cash and give it to New York. In their defense I must say, why isn't MY nad-free AG doing anything?
However, I'm not the least surprised. Nobody from Sony went to prison for rooting millions of PCs, despite the fact that if you did to them what they did to me you'ld be in the slammer for years.
I didn't read far enough to see if they agreed to stop defrauding their customers. But hell, you expect thieves and con men to tell the truth in a contract? I mean, the agreement is about their LIES to begin with!
I'm looking for a new cell phone company. Is there one out there that is reletively sleaze-free? I was happy with Cingular for years, never went over my minutes (always had rollover minutes) and the bill was always the same, under $50. Then AT&T bought them out, and all of a sudden I got hit with a $150 bill. I didn't pay it. The next month they tacked on another $450 on top of the $150, and shut off my service. After shutting off my service, they tacked ANOTHER $150 for the month I was without service, including taxes on the service they never provided.
Verizon was on the list of possible replacements (I'm using pay as you go right now), so this story was just in the nick of time. Thank you, slashdot!
You iknow, I'm a geezer; I don't remember businesses being run by thieves and sociopaths when I was young. Maybe my memory is bad, or I was naive. Or maybe we're heading for another world wide depression like tha 1930s?
-mcgrew
(Oblig link [mcgrew.info] to my blagh posting about Sony rooting my box, titled "SONY MUST DIE!!!!")
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there! right there is the essence of wisdom for today.
Anyone demanding a contract or agreement is a thief and needs to be treated as such.
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The idea behind a contract is some assurance of continued business. Why would a bank loan you hundreds of thousands of dollars without some form of assurance that you will actually pay it back? Why would a telco invest in technology and infrastructure without some form of guarantee that they will be able to recover their cost?
Contracts are necessary. If you don't like them, don't s
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Why does the gas company not make me have a contract? the electric company? hmmm? Laws cover the needs of that.
how about a basic phone line at my home? no contract there either. your examples are all flawed as there are laws in place that protect both sides. Contracts are about extending those laws in a manner that gives the company way more benefits then they are entitled to. Can I call up AT&T wireless and get a sim card without a contract? nope. they will not do it. why? be
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First, they do have an implicit contract for payment in exchange for services rendered. Second, they either make you pay a deposit (in case you don't pay up later), or require evidence of good credit, or make you pay a month in advance (like most phone bills). Most importantly, they're only extending you one month's worth of well-insured credit at a time. There's always overhead and risk involved in signing up a new custome
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LOL! Hell no. Sleaze is what makes these guys money. The least objectionable is probably Alltel, but I haven't a clue if they're available in your area. I have Verizon but only because they (and Alltel) are the only carriers that cover my hometown. I'd switch to Alltel if I didn't have to pay a termination fee.
Of the big 4, I don't think any of them are any better than the rest. You're really getting into Hitler > Stalin > Castro > Mao typ
parent post highly underrated (Score:5, Insightful)
You grew up in the period between the 1930s and the 1980s? I'm sure there were corporate thieves and miscreants in that period, but the tale of the stats say they weren't as rampant as today. Not even close.
Before the 1930s, man, they were effin' brutal. These days, they're trying really hard to bring back those 'Good Old Days' of yankee 'caveat emptor' capitalism. Really really hard.
It's up to us, the people, to stop being so apathetic, turn off that stupid Nip/Tuck, and call for and vote in some corporate responsibility. Start with boycotts and then put pressure on politicians. Stop letting these people think we don't care.
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You iknow, I'm a geezer; I don't remember businesses being run by thieves and sociopaths when I was young.
Really? United Fruit anyone? ITT? Want a few others?
Maybe my memory is bad, or I was naive.
Both I guess
Or maybe we're heading for another world wide depression like tha 1930s? Yes by the look of it
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Go to www.sprint.com/sero
Enter "savings@sprintemi.com" for the e-mail address.
Enjoy!
$30/month, 500 minutes, unlimited data, EVDO RevA speeds, unlimited text/picture messaging, no roaming fees.
Cheap, easy to deal with. Moderate hold times, and the customer service is okay (not stellar, like T-mobile, but the service is excellent).
Also, Sprint has plenty of extra bandwidth, so they actually _encourage_ streaming video and gaming over their data network.
For example:
"Mobile Broadband Cap
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I don't remember businesses being run by thieves and sociopaths when I was young.
No, things haven't changed that much. Do a little searching and you dig up all of those great ads for cigarettes [lileks.com] that have "Doctors recommend Camel cigarettes" [blogspot.com] and "Good for your 'T Zone'" [indymotorspeedway.com] bylines. Go back further and you find that radium will cure what ails you [wikipedia.org] even when scientists already knew it caused illness. The case of New Jersey vs Radium Corp [wikipedia.org] (and the slap on the wrist they got even when internal documents and practices showed they knew it was toxic) really stands out.
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Unlimited (Score:4, Insightful)
Despite their cute (though repetitive at this point) commercials, VZW is still a bad choice for a cell company in my opinion. T-Mobile OTOH seems to make good where verizon fails. Heck, they keep sending me free phones with a couple months of free service to try them out. Ok, so i'm a corporate customer but meh.
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All in all, I agree: T-mobile is the best service I've dealt with. They don't try to squeeze you on dialup access (I use a non-T-mobile ISP, and those calls aren't dropped), they actually send and re
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While T-Mobile's service is pretty good and many Verizon users would switch if they had the choice, their phone selection continues to be behind the curve and they are STILL the only American company without any functional 3G towers operating yet. I don't understand why this is when T-Mobile Germany is one of the top providers (akin to Verizon here) and has one of the fastest 3G networks and the best phones for the buck.
Who would want to pay the insane rates that Verizon charges for a cellular technology
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they'll clarify the ads, not change the service (Score:3, Interesting)
So, what this will mean is simply that ads will get slightly more prominent disclaimers saying something like
Verizon Unlimited Bandwidth*
*Subject to terms of service; file sharing, bandwidth sharing, public servers, or continuous data transfer are examples of prohibited activities.
One million dollars for Verizon (Score:2)
Are you listening... (Score:2)
rj
Google "Verizon Unlimited" (Score:2, Informative)
"Verizon Limits Its "Unlimited" Wireless Broadband Service"
"Who's a Bandwidth Bandit? - The Checkout"
"Verizons Unlimited Data Plan Not So Unlimited"
"Verizon: "Unlimited bandwidth means 5GBs or less or we cancel your service"
Can Plan (Score:2)
"1 Million Dollars" - Pinky pointing at cheek (Score:4, Funny)
The term unlimited means no limits.
There's no way to change the definition no matter what *legalsleeze* you throw at it.
If it's not unlimited, you can't use the term.
Just like most chocolate flavored cereals, if not made using real chocolate, have to say "chocolatey"..
Maybe they need to have the term "unlimitedey" or "unlimitedlike" or "pseudounlimited" instead.
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One down, Millions to go (Score:2)
I have gone over to reporting them when I find them, you just need to go to
https://rn.ftc.gov/pls/dod/wsolcq$.startup?Z_ORG_CODE=PU01 [ftc.gov]
and fill out the report. They will do the rest.
I am sure we can find lots of examples to keep the FTC busy.
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but you really ARE the 10,000,000th visitor to this site!!!
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Verizon had to stop disconnecting customers (Score:2)
The key point, from the AG's press release, is "Since April of 2007, Verizon Wireless has voluntarily ceased cutting off customers based on their data usage and no longer prohibits common internet uses." So they do have to provide "unlimited" service. The "voluntary" part means "did it before the state got a court order".
Disclaimers, by the way, don't help. It's a false advertising lawsuit. The big print said "unlimited", and if the small print disagrees, that's false advertising.
Why are slashdotters so naieve? (Score:2)
Comcast's secret slowing of P2P traffic is much worse than this. In that case
Naive? Hardly. Verizon screwed up. (Score:5, Insightful)
Your all-you-can-eat buffet argument is actually quite apt. People's eating habits can be mapped, the limit being based on how much one person can physically consume, so restaurants rarely end up with problems.
Verizon should have played it safe, looking at their resources and the real limits, (a customer using the maximum bandwidth 24/7), and they should have charged appropriately for that service package based on their ability to deliver it. Promising unlimited usage to everybody was unrealistic. 10 or 20 people using the full bandwidth is a spike, but 13000 users is evidence of normal mass behavior which they obviously didn't plan for. --They made promises they couldn't keep and they lost the gamble.
The nature of contract law is that people and companies must be held accountable to the promises they make. Why should Verizon be treated any differently? When other companies fail to meet their obligations, the ideal model is to find some way to sever the deal in a manner which leaves the customer feeling that they were dealt with in good will, either through a refund or similar. Verizon handled itself without grace. They could have been up-front in saying, "Oops. We screwed up by signing a contract which we couldn't fulfill. To make it up to you, we'd like to offer the next two months at the same service level for the price you are currently paying, but after that we have to charge more. This will give you enough time to find another service provider. --Or if you want to cancel immediately, we'll give you back your money for the last two months." --Something like that would have shown good will and would have established new systems to avoid future problems with new clients. Instead they chose to act like dicks in the hope that nobody would sue.
I'm glad to see they lost that gamble as well.
-FL
Not Enough (Score:2)
But does Verizon even have a billion? Of course they do. That, and many more billions that they can spend on the FCC 700MHz auction. Slap 'em, and slap 'em hard!
If a hacker (Score:3, Insightful)
Had disconnected 13,000 users, he'd be in jail.
A corporate executive does it, and gets off scott free.
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use your brain moron!