[HN Gopher] Verizon to keep charging controversial fee despite $...
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       Verizon to keep charging controversial fee despite $100M settlement
        
       Author : kurthr
       Score  : 36 points
       Date   : 2024-01-15 19:46 UTC (3 hours ago)
        
 (HTM) web link (arstechnica.com)
 (TXT) w3m dump (arstechnica.com)
        
       | EMCymatics wrote:
       | Untouchable.
        
         | gruez wrote:
         | In this case they haven't been convicted of any wrongdoing, nor
         | was there any precedent that what they did was wrong. Given the
         | above, them continuing to do whatever they were doing seems
         | like the justice system working as intended? Obviously many
         | people think they're guilty of something, but in this case it
         | seems like the plaintiff's case was weak rather than verizon
         | being "Untouchable".
        
           | josefritz wrote:
           | They paid a 100M settlement. Pretty sure that's not a
           | charitable donation.
        
             | gruez wrote:
             | That makes as much sense as "he agreed to a plea bargain;
             | he must be guilty of something".
        
               | ok_dad wrote:
               | Why are you defending a billion dollar company? Is
               | Verizon so hard up that they need random people to defend
               | their shit business practices? I don't get why you're so
               | invested in this morally reprehensible practice.
        
               | gruez wrote:
               | >Why are you defending a billion dollar company?
               | 
               | "Why are you defending an accused
               | rapist/pedophile/murderer?"
               | 
               | >Is Verizon so hard up that they need random people to
               | defend their shit business practices? I don't get why
               | you're so invested in this morally reprehensible
               | practice.
               | 
               | I'm not sure how you got the impression I support "their
               | shit business practices". If you read my comments more
               | carefully you'll see I was only arguing that from both a
               | practical and legal standpoint, they don't have to change
               | their behavior. I did not make any sort of normative
               | claim.
        
               | wnevets wrote:
               | > "he agreed to a plea bargain; he must be guilty of
               | something".
               | 
               | What do you think they would be pleading to?
        
             | SoftTalker wrote:
             | And the cost of the settlement will be recovered with the
             | higher fees.
        
           | ikekkdcjkfke wrote:
           | Could another party replay this case, and they would have to
           | settle again?
        
             | gruez wrote:
             | The article says that they ended up changing the language
             | in their marketing/contracts, presumably to make it more
             | lawsuit-proof. The plaintiff lawyers also settled, which
             | suggests their case isn't a slam dunk. Given the two
             | factors suing again is probably a very risky proposition.
        
           | danaris wrote:
           | They "haven't been convicted of any wrongdoing" because we
           | have developed a _detestable_ habit, in this country, of
           | allowing--in some cases even encouraging--large companies and
           | wealthy individuals to simply _settle_ major lawsuits
           | "without admitting any wrongdoing" rather than forcing them
           | to actually, yes, _admit that lying and taking money they
           | weren 't owed and didn't need_ (or whatever other particular
           | awful thing a given suit is about) is wrong, and requiring
           | them to change their behavior.
           | 
           | All because it would be more expensive to actually see
           | justice carried out.
           | 
           | It _really_ makes me wonder just how expensive it would be,
           | in net, to nationalize and /or break up companies like
           | Verizon, and force them to be good corporate citizens either
           | by running them directly, or by cutting them down to a much
           | more manageable size and actually giving them meaningful
           | competition again for the first time in far, far too long.
        
             | gruez wrote:
             | >They "haven't been convicted of any wrongdoing" because we
             | have developed a detestable habit, in this country, of
             | allowing--in some cases even encouraging--large companies
             | and wealthy individuals to simply settle major lawsuits
             | "without admitting any wrongdoing" rather than forcing them
             | to actually, yes, admit that lying and taking money they
             | weren't owed and didn't need (or whatever other particular
             | awful thing a given suit is about) is wrong, and requiring
             | them to change their behavior.
             | 
             | Except in this case it's not really clear that taking them
             | to trial would result in a guilty verdict against them.
             | It's also possible that they get off 100% scot free
             | instead. I don't know about you, but if I was a consumer
             | I'd rather get a paycheck in the mail right now, than
             | having both sides' lawyers rack up thousands more billable
             | hours (which will be paid from the settlement and/or future
             | bills) for an uncertain promise of a bigger paycheck and
             | them being declared as guilty.
        
               | anigbrowl wrote:
               | Not a Verizon customer, but any regular consumer is only
               | going to be getting $20 or $30, max. If they are guilty,
               | then letting them buy their way out of it without
               | admitting it is BS; if they're not, then letting them be
               | shaken down without being at fault is BS. Reducing
               | everything to expected value and probabilistic
               | calculations means that an ever-increasing volume of
               | commercial and legal decision-making is based on bluff
               | rather than principle.
        
             | kmeisthax wrote:
             | The "detestable habit" is just the nature of an adversarial
             | court system. If both the defendant and plaintiff agree to
             | drop the matter, how else can you continue the case? Do you
             | have the judge start the Verizon inquisition[0] and become
             | (or appoint) a new plaintiff? Who's going to pay for their
             | time?
             | 
             | It sounds like what you want is the FTC to prosecute the
             | case in lieu of the plaintiffs. That's possibly viable, but
             | they also kind of have their hands full with Google.
             | 
             | [0] Yes, the alternative to an adversarial court system is
             | _literally the Spanish inquisition!_
        
               | anigbrowl wrote:
               | The adversarial legal approach is highly overrated.
        
       | j-bos wrote:
       | One thing that rubs me the wrong but same way about stories like
       | this, certain layoffs, ads in paid subscriptions, the sales of
       | personal data, and shoddy-safe planes falling out of the sky, is
       | the insincerity of it. Verizon is charging a separate hidden fee,
       | supposedly to pay for gov't fees, but it's not a gov't mandated
       | fee. Anyone with eyes open can smell the double talk. It's
       | tiresome to constantly be lied to and need to be guarding against
       | institutional pickpockets.
        
         | eek2121 wrote:
         | What ads and what sale of data? Ars does not sell or give away
         | paid subscriber data, and they certainly don't show ads to paid
         | subscribers.
        
           | danaris wrote:
           | I don't see anywhere in the GP a suggestion that anything in
           | their criticism is directed at Ars Technica...
        
           | j-bos wrote:
           | Sorry for the lack of clarity. It was a general comment about
           | certain trends I've been noticing and not specific to any one
           | offender in particular. Certainly not Ars, I'm not familiar
           | with them on that level.
        
         | landedgentry wrote:
         | It's exhausting. I wish there were a way to quantify this,
         | because it feels more and more unabashed, egregious, common and
         | normalized.
        
           | p1mrx wrote:
           | Maybe they'll change course if we throw enough adjectives at
           | them.
        
       | kmeisthax wrote:
       | In my opinion, advertised prices should always be inclusive of
       | taxes and fees. Anything less is cost obfuscation. It's like the
       | ol' eBay scam of 1 cent items that have the whole cost of the
       | item built into the shipping just to confuse people.
        
         | 6493747485 wrote:
         | The argument against this, specifically with regard to taxes,
         | is that baking in the tax conceals the impact of that tax from
         | the consumer. Obviously this primarily applies to sales taxes
         | since production taxes aren't consumer facing (even if they
         | impact consumers) but it's still better imo than simply not
         | having that information since most laws are already fire and
         | forget type affairs and so their costs can compound over time
         | to degrees that aren't as immediately obvious to the public if
         | they aren't displayed frequently and visibly.
        
           | rvba wrote:
           | Goods distibuted in samw geographical area generally have
           | similar prices even after transportation, so shop in county A
           | that has lower tax, will be cheaper than same shop 1
           | kilometer (1 mile) in county B, that has higher tax. Why
           | would the shop want to hide the tax?
           | 
           | In EU shops are made to show price per kilogram / liter too.
        
           | jjeaff wrote:
           | I agree that taxes need to be applied separately so the
           | public knows how much they are paying in taxes. Also, if you
           | required including the tax, it would not be possible for most
           | sites to advertise any prices without the user creating an
           | account, providing their shipping address and logging in,
           | since tax rates vary by country, county, even municipality.
        
             | thefurdrake wrote:
             | Please explain in excruciating detail the need for an
             | account to provide a single input box for zip code to just
             | calculate fees? I need a serious breakdown of the logic
             | behind this position, because from where I'm sitting, it
             | seems to me like you could determine someone's "country,
             | county, even municipality" with that single piece of data
             | and no more.
        
               | toast0 wrote:
               | Zip codes aren't specific enough to determine tax rates.
               | Zip codes are assigned by the post office to facilitate
               | delivery of mail, not to determine which taxing districts
               | an address belongs in. You really need the whole address
               | sometimes. Because the city name on the mailing address
               | often indicates the city, but not always. And some taxing
               | districts don't follow city boundaries anyway. And you
               | need a process to handle exceptions, because boundaries
               | are complex and sometimes mistakes are made.
        
               | thefurdrake wrote:
               | Fair enough! However...
               | 
               | I'm still not seeing why that experience requires an
               | account, so while this response is academically
               | interesting, it doesn't actually address the purpose of
               | my comment. Any reason why these calculations can't be
               | performed without an account? Any reason why needing to
               | enter the street address is functionally different from
               | needing to enter the zipcode for this functionality, or
               | were you just attempting to add detail/nuance?
        
           | kmeisthax wrote:
           | I'm not objecting to knowing what the taxes are, I'm
           | objecting to companies being able to hide the taxes to make
           | switching look like a better deal than it actually is.
           | 
           | If Verizon advertises, say, $50/mo cellphone service, they're
           | actually going to charge you an extra $15 or so, but they
           | won't tell you what you're paying in taxes until you've
           | actually signed up for the service and paid the switching
           | costs. I want Verizon to advertise $65/mo ($50/mo base +
           | $15/mo fees).
        
             | cmiles74 wrote:
             | Or they won't tell you until you receive your first bill,
             | when it's far too late to cancel the contract.
        
             | toast0 wrote:
             | Some phone providers just eat the taxes, and that's fine at
             | some level, but also problematic if you're on a $15/month
             | plan and your city charges a $5/month per line telecom tax
             | and other cities don't. And I'm not a fan of hiding
             | mandatory uniform fees.
             | 
             | But how does Verizon run a national advertised price and
             | include the taxes when telephone taxes vary based on your
             | city, county, and state, and sometimes which part of the
             | city/county.
             | 
             | If they mail it to you, then sure, they should be able to
             | calculate it assuming your main service address is the same
             | as your mailing address. But even if they have it in the
             | window at their shop, they could include the taxes as if
             | you lived at the shop, but actual taxes will be based on
             | your service address.
        
           | anigbrowl wrote:
           | Ahahaha, like retailers care about me so much and want me to
           | be more active in local politics. That could be achieved by
           | including the information on the receipt, but omitting it
           | from the advertised price is a low grade scam.
        
         | gnicholas wrote:
         | Yes, the full price needs to be listed. At the same time, if
         | there is the need to disaggregate the items so you can see
         | where your money is going. For example, how much is tax that
         | goes to the government (and might be less if you lived in a
         | different jurisdiction), and how much goes to the company?
         | Among the latter, how much is for the base service versus
         | addons (that you might not need)?
        
         | jjeaff wrote:
         | That one penny eBay truck may have been meant to confuse people
         | in some cases, but it was more likely that it was a way to get
         | around eBay fees. For a time, ebay only charged their 15% based
         | on the sale price, exclusive of the shipping cost. Once eBay
         | noticed a lot of people doing this, they changed their fee
         | structure and I very soon after started seeing a lot fewer
         | penny items with high shipping cost.
        
         | anigbrowl wrote:
         | Having lived in other countries, the US habit of 'nickel and
         | diming' every sale with taxes and fees that aren't fully
         | announced until payment is one of the most annoying cultural
         | failings. Even governments do it; I recently bought a tree
         | removal permit and my city tacked on a ~15% 'technology fee'.
         | This after I wasted a good hour dealing with the absolutely
         | awful website for the permit application - having to enter the
         | same information on multiple pages by hand, broken address
         | lookup, ugliest imaginable design and layout.
        
           | kencausey wrote:
           | I won't defend most of the practices but sales tax is, in at
           | least some US states, required by law to be listed
           | separately.
        
       | mrandish wrote:
       | This judgement only settles overcharges through Nov 8th. If
       | Verizon keeps charging this discretionary undisclosed fee,
       | hopefully enterprising class action lawyers will make suing them
       | for settlements an ongoing business model. Future judgements
       | against the same behavior might also make judges amenable to
       | increasing punitive damages on top of recovery of actual damages.
       | I suspect that might eventually "encourage" Verizon to reevaluate
       | the cost/benefit of continuing this practice.
        
       | more_corn wrote:
       | Because they make more than $100m by keeping it.
        
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