Carriers Charged With Misleading Ads, Charges
Who doesnt do this?
Doesnt every single company in every single feild do the same thing? I mean look at any car zdvertising commercial they have a huge disclaimer at the bottom of the screen that is in microscopic print. Every company has their disclaimers that they dont want you to see.
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So it happens elsewhere and that makes it right? Come on now...
This reminds me of Bobby the Brain Henan charging $.25 for a hotdog (one that is incredibly hot without the customer knowing) and then charging $50 dollars for a glass of water as the mouth of the customer is being seared from the spices.
From the article
"You can't promise a great deal in the headline and hide the true costs in the fine print," the consumer agencies' Acting Commissioner Jonathan Mintz said in a statement.
This reminds me of Bobby the Brain Henan charging $.25 for a hotdog (one that is incredibly hot without the customer knowing) and then charging $50 dollars for a glass of water as the mouth of the customer is being seared from the spices.
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The charges for text messages from the carrier I can see procecuting for, but as you said, car dealers, furniture stores, everyone has fine print. A car dealer will advertise a great deal on a car and make it sound like it applies to every car on the lot and then have a disclaimer saying that it is for only 2 cars on the lot. The cell phone industy gets a bad wrap as money hungry cheats, when their really no different than any other industry. They're actually a little more honest than car dealers.
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i agree all companies engage in that business practice. people expect more from wireless companies cause they're used to getting free stuff from them when they have something to complain about.
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Why are yall mad this will probably be better for the cosumers. Yeah other industries do this but at least this is a start. Cosider this a benefit!!!
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How? ok say they charge a carrier (and this is just an example) 10 million dollars. Thats a loss to them and some carriers might have to make that back up and how is that? Raising prices on either handsets or monthly plans. I dont know much how things work this is just what I think...
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Ok so let us use your example and let us use sprint pcs as a carrier. Therefore, if they settle these claims for $10 million dollars, which wont be that high in the first place, they wouldn’t be losing money as you put it, because they make so much. Their operating income for the first quarter of 2005 was $456 million dollars. The $10 million dollars represents only about a 2% of their operating income for the first quarter of 2005. As a result, if we do $456 million times four (for the year) would be $1.8 billion dollars. Thus, the $10 million dollars would only represent about .55% of their operating income, which is nothing.
They wouldn’t be raising anything to make up for something that represents that small percentage as to operatin...
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They wouldn’t be raising anything to make up for something that represents that small percentage as to operatin...
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No problem. 🙂 I was just stating the valuation for a carrier and that amount that you have mentioned and I am not trying to say anything (i.e. rub it in your face or what not), but just to have a friendly dialogue so please don’t take it the wrong way. 🙂
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nextel18 said:
Therefore, if they settle these claims for $10 million dollars, which wont be that high in the first place, they wouldn’t be losing money as you put it, because they make so much.
What economics book are you getting these examples from? "The Three Stooges Guide to Money"?
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You don't have $10 million lying around? I could find that in my couch. 🙄 🤣
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Umm, expenses?? Income is not Profit. They may have income of $456 million (is it really 456??) but what kind of expenses do they have? I tried to find their income statement, but it's late, and well, you know how that goes. Their expenses could be $450 million, leaving them with $6 million in profit that they were planning on maybe putting out a new network or something or maybe paying it out to the owners (stock holders). For something stupid like this, from what I understand not really even hiding anything, just putting it in small print, could hurt the companies. These fines are meant to sting. That's why they're in the millions sometimes, but if I were do do it, it may be in the thousands.
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wfine81 said:
Doesnt every single company in every single feild do the same thing? I mean look at any car zdvertising commercial they have a huge disclaimer at the bottom of the screen that is in microscopic print. Every company has their disclaimers that they dont want you to see.
But to send unsolicited texts? That you have to pay for?
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oh, dont get me wrong, I agree 100% with the text problem I just dont agree with the rest
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muchdrama said:wfine81 said:
Doesnt every single company in every single feild do the same thing? I mean look at any car zdvertising commercial they have a huge disclaimer at the bottom of the screen that is in microscopic print. Every company has their disclaimers that they dont want you to see.
But to send unsolicited texts? That you have to pay for?
hehe we get ya comming and going 😛
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I suppose by same logic, banks will be sued for charging ATM fees, not likely. 👿
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Banks don't even tell you about the ATM fee until you are done with the transaction. Yeah, they tell you about it in the contract and most of the time in small print on the ATM itself, but if it's not spelled out to the consumer like a kindergarten reading book, they shouldn't be held responsible for it, right? 🙄
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This forum is closed.
