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.

Comments

Fine vs profit?

[rossz]

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.

Re:Fine vs profit?

[itzdandy]

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.

Re:Fine vs profit?

[FranTaylor]

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

Re:Fine vs profit?

[FranTaylor]

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.

Re:Fine vs profit?

[itzdandy]

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.

Re:Did they make more than $750K profit by blockin

[FranTaylor]

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.

Re:Where does the money from the fine go?

[FranTaylor]

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

A corporation in jail - that's not gonna happen

[Overzeetop]

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.

Class action law suit is deserved

[gurps_npc]

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

Re:Could be argued differently...

[careysub]

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.

Re:Where does the money from the fine go?

[FranTaylor]

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

Re:I wonder how they're jamming?

[ColdWetDog]

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."