Wow. Talk about being brought to its knees! Verizon Wireless executives today must be literally floored by the "largest fine in history" assessed the company Thursday for the "mystery fees" it charged 15 million customers over the past three years.
As in rolling on the floor laughing
It sends a message, alright. And the message is that corporations can rip off consumers at will, knowing that the worst consequence will be a wrist slap and a forced (not to mention insincere) statement of contrition.
To recap, going back to November 2007 Verizon Wireless charged customers without monthly data plans $1.99 per minute for a number of activities, such as data transfers via built-in apps, accessing Web links that were advertised as free (such as Verizon Wireless's own mobile web site) and attempts to access data that failed due to inadequate network bandwidth.
I know, add in the $52.8 million that Verizon Wireless previously said it would repay customers and now the company is coughing up $78 million for its misdeed. How much is this really going to hurt a company that has generated more than $107 billion in revenue and operating income of more than $30 billion over the past seven quarters? I think we all know the answer.
But there's Michele Ellison, Chief of the FCC's Enforcement Bureau, saying, "I am gratified by the cooperation of the Verizon Wireless team in the face of these issues, and pleased they are taking the high road."
Honestly, the whole thing is a joke. Too bad the joke's on consumers.
Chris Nerney writes about the business side of technology market strategies and trends, legal issues, leadership changes, mergers, venture capital, IPOs and technology stocks. Follow him on Twitter @ChrisNerney.
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This story, "FCC's Fine on Verizon Wireless a $25 Million Joke" was originally published by ITworld.