Home > Uncategorized > FCC Asks Verizon to Explain Doubling of Fees

FCC Asks Verizon to Explain Doubling of Fees

FCC Asks Verizon to Explain Doubling of Fees

This article is about the FCC inquiring about Verizon’s recent increase in fees that are charged to customers who break their contracts on smart phones.  Verizon has raised the fee for customers who cancel their smart phone contracts from $175 to $350.  The main FCC issue is that Verizon has not directly informed their customers about this increase in fees.  Instead, they only put the rate increase into the small print of the contract, where many people would never see it.  Verizon is justifying the fee increase by saying that the use of smart phones has increased significantly over the past several months and that there is a significant loss to the company when customers cancel their contracts early.

The main ethical issue here is whether Verizon is justified in doubling its fees.  While I understand that Verizon loses a lot of revenue when customers cancel their contracts early, I don’t believe that this gives Verizon the right to double their fees.  I believe that they are simply taking advantage of their customers, and that is unacceptable.  I also think that it is unethical to not directly inform their customers about the rate increase.  Since customers can readily change phone companies after their contracts expire, it would seem that Verizon should be doing more to take care of their valued customers.

R. Brow

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Categories: Uncategorized
  1. okazako1
    December 4, 2009 at 10:16 pm

    I agree it is unethical to double their fees. On the other hand, it is business. The company invest so much money on this phones that it could not afford to loose when customers cancel their contracts. From the beginning the customer knows what she/he signs for, therefore, it is should not be an issue for them to pay this fees. Imagine if everyone will start cancel ther contracts whenever they want…then what are contracts for?

  2. twinpate
    December 7, 2009 at 2:51 pm

    If the doubling of fees can be justified then its fine ethically. The market adjusts itself and if customers want to choose a cheaper alternative then Verizon will have to eventually adjust its prices to gain back any market share that is lost.

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