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Verizon: When “Unlimited” Doesn’t Mean Unlimited

Verizon unlimited broadband No one wants to have to watch the clock or keep track of kilobytes downloaded when surfing the net while traveling, so when Verizon offered “unlimited” broadband access for your laptop via its cell towers, many consumers signed up.

From a 2005 press release announcing a promotion for its BroadbandAccess service, Verizon said:

Because of Verizon Wireless’ number of customers, network footprint and experience in deploying a national wireless broadband service, customers can take advantage of unlimited BroadbandAccess for $59.99 monthly access with a two-year customer agreement.

The problem was that “unlimited” did not really mean unlimited.

*MOUSE PRINT: The downloading of movies and playing online games were not allowed. And there was an undisclosed cap on monthly usage which could trigger termination of your account. The service was primarily intended for web browsing, email and intranet access only.

Unfortunately for Verizon (and fortunately for consumers), the New York Attorney General started investigating the promotion, and learned that some 13,000 customers nationwide had had their services terminated for excessive use of the unlimited service they purchased.

To settle the case, Verizon agreed to reimburse terminated consumers some $1 million in costs for their equipment, and pay $150,000 to the NY-AG. [Settlement announcement from the New York Attorney General.]

Currently, on the Verizon Wireless website, the service is being marketed specifically for web browsing, email and intranet access, and all references to unlimited use have been removed:

verizon broadband updated

Their terms and conditions now explicitly state what activities are prohibited and what the cap is on usage.

For its part, Verizon said:

“We are pleased to have cooperated with the New York Attorney General and to have voluntarily reached this agreement,” said Howard Waterman, a spokesman for Verizon Wireless. “When this was brought to our attention, we understood that advertising for our NationalAccess and BroadbandAccess services could provide more clarity.”

Putting aside the PR BS, let’s hope this is a lesson not only to Verizon about how it promotes its services, but also to other providers who also promise “unlimited” service but in fact have undisclosed usage caps.

[Disclosure: Edgar is a new member of Verizon’s Consumer Advisory Board and receives a small grant to help operate ConsumerWorld.org .]

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Ace Ticket: “Great” Prices for Red Sox Tickets?

Ace Ticket adWhat Boston Red Sox fan wouldn’t have wanted to see the seventh and final game of the ALCS playoffs to see if their favorite team would make it into the World Series?

Ace Ticket, a large broker of tickets advertised the day of the big game that they had tickets available at “great prices.” [Boston Globe, October 21, 2007]

For this game, Ace Ticket prices ranged from a “low” of $309 for lower bleacher seats to $2450 for field box seats:

ace prices

Those prices indeed are “great” (as in high), and it would be hard to imagine “greater” prices (although another seller had box seats behind the dugout for $5500 each). These tickets were marked up multiple times their face value. By comparison, based on prices for the regular 2007 season, bleacher seats normally sell for $23, and field box seats sell for $105. Playoff seats are priced higher: $25-$60 for bleachers, and $170 for field box seats.

[As an aside, Ace Ticket is selling bleacher seat tickets for game one of the World Series for $1095 and field box seats for $8900 each.]

Current Massachusetts law forbids the scalping of tickets by only allowing tickets to be resold by licensed brokers for no more than $2 above the face value plus certain limited business expenses.

So how does Ace Ticket get away with reselling tickets marked up so many times their face value? The state Department of Public Safety doesn’t enforce the law! Accordingly, Ace Ticket has tucked away this provision in their terms of sale:

*MOUSE PRINT:

Important: Also Note: In Massachusetts, the resale of tickets to certain events is regulated by statutes and regulations, including G.L. c. 140, ßß 185A ñ G, that authorize certain officials, including the Commissioner of Public Safety, to bring legal action against ticket resellers for claimed violations. In order to buy a ticket from Ace Ticket, you must acknowledge and agree that you cannot and will not bring any claim or cause of action in any private suit or administrative proceeding that is in any way based on Ace Ticketís alleged violation of any such statute or regulation, including, without limitation, G.L. c. 140, ßß 185A ñ G, and that your sole and exclusive remedy for the violation of any such statute or regulation will be to file a complaint or other notice with the public official responsible for enforcement of such statute or regulation. By purchasing a ticket from Ace Ticket, you expressly waive and forever release all claims that you, individually or as part of a class, might bring in a private action based on the alleged improper resale of regulated tickets in violation of any such statute or regulation, including, without limitation, G.L. c. 140, ßß 185A ñ G. I HEREBY ACKNOWLEDGE THAT I HAVE READ AND AGREE TO THE ABOVE-STATED TERMS.

Translation: You agree not to sue us if we overcharge you, and all you can do is complain to the state or the city (which history shows will do nothing to address your problem).

While one Massachusetts consumer activist, Colman Herman, has tried to fight the ticket brokers on his own (and is winning), remarkably the state legislature is poised to repeal the state ticket scalping law.

The result: ticket brokers 1, consumers 0.  Go Sox!

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Seattle Coffee Direct: Free Grinder & Coffee?

Seattle Coffee Direct 1“Free” is one of the most powerful words in marketing. And who wouldn’t want to get a free Cuisinart coffee grinder and two bags of coffee?

Anyone who clicks on this offer on the homepage of Seattle Coffee Direct will surely be surprised to see that there is no free lunch.

*MOUSE PRINT:

Seattle Coffee $9

So the offer really is to BUY two 12-ounce bags of coffee for $9 and get a free coffee grinder. And it says you are going to get two bags of coffee MONTHLY. This sounds like the offers that Gevalia has made for years, but they offered a free or reduced price coffeemaker.

If you look at the sign-up page, you really would not have a great idea how this monthly plan works, but you would think that you are only going to pay $9 now. The fact is, you are going to pay nowhere near $9 for the free coffee grinder and two bags of coffee.

*MOUSE PRINT: To spill the beans, you have to read the last words in the above graphic that say “click here for details.” Amongst other “details”, you will find that they are going to tack on a “small” $25 “handling fee” to your order, and your pound and a half of monthly coffee in the future will cost a mere $25 plus a small (unspecified) shipping and handling fee:

Seattle Coffee $25 Shipping

So the offer has morphed from a free grinder and free coffee on this company’s homepage, to $34 for a free grinder and coffee, plus being subscribed to an expensive monthly coffee club.

Incidentally, to top it off, Seattle Coffee is in Evanston, Illinois.

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