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Telecom Carriers Use Deceptive Advertising

theodp writes "Regulatory Programs Fee. It sure sounds like a government tax. It isn't. The latest addition to T-Mobile's monthly bill is merely the latest example of telephone companies passing their own cost of doing business to customers with an array of surcharges that one might easily mistake for taxes being collected on behalf of the government. With millions of subscribers at each company, these less-than-forthright fees add billions of dollars per year in extra revenue without raising advertised rates."

6 of 285 comments (clear)

  1. Re:Deceptive, not illegal by TykeClone · · Score: 5, Insightful

    There are no taxes on businesses - All taxes are passed on to their customers. Telecoms just are kind enough to itemize it.

    --
    A fine is a tax you pay for doing wrong and a tax is a fine you pay for doing all right.
  2. Re:Big Fat Duh! by tomstdenis · · Score: 5, Insightful

    No, deception but not illegal is called "modern business". It's gotten to the point that to make more money than your competitor you don't make a better product [why? Standards are fairly subjective nowadays]. Instead you trap your customers into useless deadend contracts and then tact on this charge and that charge.

    Banks are by far the most useless institution I've seen. For instance, I get paid via cashier cheques made out to my name. However, if I walk into another branch of the same bank I can't cash the cheque despite the fact every teller has a new-fangled computer with a 17" LCD monitor [which probably cost serious coin].

    Every time I see a teller it costs money. Whenver I cash my cheque it costs me money [2% + fee to change from USD to CDN]. Whenever I take out money from non-branch ABMs it costs me money. etc, etc, etc.

    Then you get into bank hours which are often anywhere starting from 9 to 11am and ending from 3 to 5pm totally useless for students and the employed.

    Then you get into the stupid tellers. Who rarely follow procedure [one teller will cash your cheque without a hold another with a 20 *BUSINESS* days hold].

    Then commercials tell you "you are first, we are here to put you first, if you are not first then we are not doing out job to put you first. You are the first important job we deal with because as our first customer you will get the first attention you firstly deserve" which are just trying to hide the fact that banks don't give a rats ass about customers. If they can find a way to make a buck off a customer [including raping you up the ass when you're not looking] they'll certainly try.

    Personally if I could find another way to turn a cashier cheque into rent+school+bill+food I would do it in a heart beat.

    Back on topic. Phone companies pretty much work on the same M.O. Using stupid commercials to blindside the customer into signing 3yr contracts for plans they don't need, can't use and wouldn't want given the option. 60 "anytime minutes", unlimited weekends, 0.30$/m net access, bullshit bullshit bullshit.

    Personally I'd love to see a plan "you pick up da phone and you can talk", no net, no ring tones no stupid extras. Just a fucking phone. These "value added gourmet quality" additions are just there to cover up the fact that you pay too much for the little coverage/service you get. It's like adding salt to dog shit and calling it steak.

    That's my rant and I'm sticking to it.

    Tom

    --
    Someday, I'll have a real sig.
  3. Re:yeah, exactly, "cost of doing business" by profet · · Score: 5, Insightful

    No one is saying they shouldn't make money.

    The gripe is that they are using the old bait and switch tactic, by disguising extra fees as taxes.

    So instead of advertising a plan for $50/month + tax...its actually $40/month + tax + B.S. charges.

  4. Re:Not with AT&T by DAldredge · · Score: 5, Insightful

    But they don't include those fees in their TV, radio or print ads, do they?

    THAT is what upsets people.

  5. Re:Deceptive, not illegal by Anonymous Coward · · Score: 5, Insightful

    So, because it's not breaking any laws, and they're only innocently taking advantage of people not reading the 5,000 page included agreements, we should let this go?

    Don't you get kind of fed up with companies taking advantage of people? Why is this so accepted in this country? Shouldn't we start doing something to companies that blatantly lie to costomers to gain their business? How long are you going to allow people to get screwed over and then point the finger at the individual because it's "their fault" they didn't take time out of their 50 hour workweek to deal with one-of-several-hundred companies bullshit lies?

  6. Re:Deceptive, not illegal by SagSaw · · Score: 5, Insightful

    Of course, such is big business. When you buy a car, you pay a "transportation fee" for getting the car from the factory to the dealership.

    As far as I'm concerned, there is nothing wrong with these practices so long as the fees are disclosed to the purcahser before they have to commit to the purchase (or lease, other contract). In the case of the trasportion fee on new cars, it is listed on the sticker, and is a part of the sticker price.

    This would be equivalant to the telco companies simply stating that $17.47 of your $59.99/month plan goes towards regulatory compliance.

    --
    Come test your mettle in the world of Alter Aeon!