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FCC Fines Smart City $750K For Blocking Wi-Fi

schwit1 writes: FCC's Enforcement Bureau today announced a $750,000 settlement with Smart City Holdings, LLC for blocking consumers' Wi-Fi at various convention centers around the United States. Smart City, an Internet and telecommunications provider for conventions, meeting centers, and hotels, had been blocking personal mobile 'hotspots' that were being used by convention visitors and exhibitors who used their own data plans rather than paying Smart City substantial fees to use the company's Wi-Fi service.

27 of 188 comments (clear)

  1. Fine vs profit? by rossz · · Score: 4, Insightful

    If the fine isn't substantially more than the profit they made from blocking wifi, there is no incentive to stop the practice. The fine will be just another cost of doing business.

    --
    -- Will program for bandwidth
    1. Re:Fine vs profit? by itzdandy · · Score: 4, Insightful

      the first fine is a slap on the wrist, but if they continue the next fine will be substantially larger, order of magnitude larger. The FCC might only slap on the wrist for 1st offense, but they get real serious when people don't follow their direct orders.

    2. Re:Fine vs profit? by FranTaylor · · Score: 5, Informative

      the first fine is a slap on the wrist, but if they continue the next fine will be substantially larger, order of magnitude larger. The FCC might only slap on the wrist for 1st offense, but they get real serious when people don't follow their direct orders.

      they signed a settlement agreement in the court room, so further infractions are really "contempt of court" with immediate jail for the offenders

    3. Re:Fine vs profit? by itzdandy · · Score: 2

      true, but that doesn't release them from FCC liability either. And the chances of a settlement are near zero for a second offense. I've seen second FCC fines in another wireless industry, they are no joke.

    4. Re:Fine vs profit? by FranTaylor · · Score: 5, Interesting

      you can find this on google if you look:

      Marvin Chaney, 61, founder of RoboVault, was taken into custody by U.S. Marshals on January 29 on the orders of U.S. Bankruptcy Judge John K. Olson for violation of court orders.

      Brandon bankruptcy attorney O. Reginald Osenton commented, “This goes to show you how important it is to follow carefully a judge's instructions, no matter what type of case you are involved in.”

      Olson issued the arrest order after Chaney and his attorney, Lawrence Wrenn, did not show up for a court hearing on January 17. Appearing shackled before the judge, Chaney said that Wrenn had advised him not to attend the hearing and that he had tried his best to produce the records that had been requested of him.

    5. Re:Fine vs profit? by itzdandy · · Score: 4, Informative

      Contempt of court has nothing to do with the FCC. The FCC will still come after the business for the second fine for which they are unlikely to accept any settlement. Also, you can't jail a corporation, only it's officers which is VERY hard to do, just look at the banking fiasco and how few people were jailed over it. This will likely only ever come down to fines and more fines if they repeat until the business loses solvency.

    6. Re:Fine vs profit? by itzdandy · · Score: 3, Informative

      no, your talking criminal contempt, this is civil contempt and the punishment would most likely be commutation of the settlement and liability for court costs. This is against a corporation, not individuals, there's no specific person that is liable and it wasn't a criminal offence.

    7. Re:Fine vs profit? by ArhcAngel · · Score: 2

      Corporations are USUALLY owned by shareholders not individuals. And such is the case of Smart City so it would likely be THESE people who were held accountable.

      --
      "A person is smart. People are dumb, panicky dangerous animals and you know it." - K
    8. Re:Fine vs profit? by 140Mandak262Jamuna · · Score: 2

      You keep saying the same thing again and again. Are you legit? Or are you connected with SmartCity somehow? Don't want to call you a shill without evidence. But I have not seen any serious top company officials go to jail for anything. Not for causing oil rig explosion that killed people, oil spills, coal ash wash outs, nearly destroying the global financial system, lying about the company prospects... nothing seems to put the top bosses in jail. And you keep parotting as though if I catch them blocking wifi they are going to jail. They will create another shell company that will do the blocking. Eventually when that shell company gets caught, it too would pay a trivial fine without admitting guilt and sign another consent order. SmartCity will feign ignorance.

      --
      sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
    9. Re:Fine vs profit? by Ol+Olsoc · · Score: 3
      Blocking is a rather nice word for jamming, and jamming gets the FCC's attention very quickly.

      They will even kick ass on Power companies that inadvertently create a lot of interference via power line issues like cracked insulators, and other such oddities that create sparking or other noise issues.

      If a noise complaint occurs, and it checks out, the FCC sends a nice letter - If fixed, everyone is happy. If not, a nastygram is delivered. If fixed, everyone is happy. It still not fixed, they bitchslap the company with a fine, or forfeiture as they call it. That forfeiture is really hard to get out of, given the chances they give.

      A second offense? I've never seen one, but it would be really foolish. I'll have to look up what happens then

      Some times a power company has someone who doesn't take the complaints seriously, perhaps since most of them come from Radio Amateurs. But the Hams are a licensed service, and have the equipment and wherewithal to find the problems. So they carry a lot of veracity.

      But to the topic at hand, a 750,000 fine might be considered a lucky break for Smart City, who were definitely not being smart. Another time? Be probably like pissing off Mr Bigglesworth.

      --
      The shepherds did so well protecting the flock that the sheep no longer believed that wolves existed.
  2. $750K only? by Virtucon · · Score: 3, Insightful

    Seems the fine doesn't fit the crime.

    --
    Harrison's Postulate - "For every action there is an equal and opposite criticism"
  3. Re:Did they make more than $750K profit by blockin by nitehawk214 · · Score: 2

    Then they would get hit with the fine again and again until they quit it. It is just like speeding. You get a ticket today for speeding, you are not covered, if you speed again you can get a ticket again right away.

    And people are going to be watching this company very closely now.

    --
    I'm a good cook. I'm a fantastic eater. - Steven Brust
  4. Re:Did they make more than $750K profit by blockin by MightyMartian · · Score: 2

    More to the point, if you keep getting fined for the same offenses, those fines are going to increase, and stronger measures may eventually be used to, if not assure compliance, then so damage the company that compliance ceases to be an issue.

    --
    The world's burning. Moped Jesus spotted on I50. Details at 11.
  5. 'Ehhh - thiks?' What is this 'ehhh - thiks'? by r-diddly · · Score: 2

    Smart City not so smart. And proving once again that acting like a dick is not a best practice.

  6. Re:Did they make more than $750K profit by blockin by FranTaylor · · Score: 5, Informative

    RTFA:

    "As part of the settlement, Smart City will cease its Wi-Fi blocking activities"

    They signed a court order, if they keep doing it, it's contempt of court this time.

  7. Re:Where does the money from the fine go? by FranTaylor · · Score: 4, Funny

    How much of that $750,000 fine goes to the people who had to pay $80/day for Internet service because they couldn't use their WiFi hotspot?

    I'm going to guess the answer is $0

    They can have all of the $80 back after they file a $100 fee

  8. Re:Where does the money from the fine go? by Virtucon · · Score: 3, Funny

    None of it, it'll all go into the general fund and within nanoseconds it'll disappear to pay for F-35 parts.

    --
    Harrison's Postulate - "For every action there is an equal and opposite criticism"
  9. A corporation in jail - that's not gonna happen by Overzeetop · · Score: 5, Insightful

    The day I see a corporation behind bars is the day they'll start to listen. Now, if you were to "jail" them by requiring a halt of all stock trades, impound all assets, suspend all business operations, and revoke the corporate status and protection for all holdings and subsidiaries for the length of the jail term. That would get people's attention.

    --
    Is it just my observation, or are there way too many stupid people in the world?
  10. Class action law suit is deserved by gurps_npc · · Score: 4, Interesting

    Every single person that attended their events should join a class action law suit.

    --
    excitingthingstodo.blogspot.com
  11. Re:Could be argued differently... by careysub · · Score: 4, Insightful

    The argument can be raised that it is their hotel, and their rules.

    If I went to a pub and brought my own booze, I'd be tossed out. Same rule can be argued to apply with Wi-Fi.

    Only if you had absolutely no idea what you were talking about. Wireless transmissions take place on publicly owned airwaves. Jamming these airwaves is theft of publicly owned bandwidth.

    --
    Starships were meant to fly, Hands up and touch the sky - Nicky Minaj
  12. Re:Could be argued differently... by Bruce+Perens · · Score: 3, Informative

    Jamming is wilful obstruction of communications. It's criminal rather than civil.

  13. Re:Where does the money from the fine go? by FranTaylor · · Score: 4, Funny

    Remember, the primary purpose of justice in the USA is revenge (a.k.a. "retribution"), not restoration.

    yes, in other countries they bring back murder victims from the dead

  14. Re:I wonder how they're jamming? by ColdWetDog · · Score: 5, Informative

    If you read the ARS article on this, you would see that:

    "In responses to FCC investigators, Smart City later revealed it "automatically transmitted deauthentication frames to prevent Wi-Fi users whose devices produced a received signal strength above a present power level at Smart City access points from establishing or maintaining a Wi-Fi network independent of Smart City's network," according to a consent decree filed in the case."

    --
    Faster! Faster! Faster would be better!
  15. Re:I wonder how they're jamming? by EXrider · · Score: 2

    Interesting, so a savvy user could circumvent this nonsense by tethering their hotspot (or smartphone) via USB or Bluetooth.

    --
    grep -iw skynet /etc/services
  16. Re:I wonder how they're jamming? by jittles · · Score: 2

    Interesting, so a savvy user could circumvent this nonsense by tethering their hotspot (or smartphone) via USB or Bluetooth.

    Only if you just needed a WAN connection on a single machine. If you wanted to create a WLAN as a presenter, you were SOL.

  17. Re:Could be argued differently... by coolsnowmen · · Score: 2

    The better scenario here would be if you EM insulated ( Faraday cage) your establishment. But then went on to offer your own wifi...

  18. Re:Could be argued differently... by david672orford · · Score: 2

    Wireless transmissions take place on publicly owned airwaves. Jamming these airwaves is theft of publicly owned bandwidth.

    They don't jam the signals (in the sense of broadcasting noise). They turn the building into a big faraday cage. I stayed at one of these hotels and my phone's reception went from 4 bars outside to 0-1 bar inside. I tried standing next to a window and still was barely getting a signal. Later I found out they make conductive film you can put on the windows - optically transparent but makes for a seamless faraday cage.

    It is my understanding that that would be legal (though still sleezy). As long as the building materials do not emmit radio waves, the FCC has no authority. But, you're right, they are not broadcasting noise. They are spoofing packets from the 'rogue' wireless access points. These packets tell the clients that they are being kicked off and the clients disconnect. It is a highly efficient and effective form of jamming.

    The hotels fined for doing this complain that they should be allowed to do it because they are using FCC approved equipment. But that is missing the point. That is like saying that you should not have gotten a traffic ticket for speeding because your car is roadworthy. It is not enough for the radio transmitter to be legal. You must also use it in a legal way. Programming the WIFI controller to send jamming packets using the FCC approved transmitter is illegal.