Podcast
Questions and Answers
What is the practice of 'cramming' in relation to cell phone bills?
What is the practice of 'cramming' in relation to cell phone bills?
Cramming refers to the unauthorized addition of recurring third-party charges to consumers’ cell phone bills for premium subscriptions.
Which company was fined $105 million by the FCC for cramming?
Which company was fined $105 million by the FCC for cramming?
The FCC fined T-Mobile USA for billing customers for third-party texting services without their consent.
The FCC fined T-Mobile USA for billing customers for third-party texting services without their consent.
True
What is throttling in the context of mobile data plans?
What is throttling in the context of mobile data plans?
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The FCC fined Verizon and Sprint in 2015 for billing customers for ___ services without their consent.
The FCC fined Verizon and Sprint in 2015 for billing customers for ___ services without their consent.
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What might cause employees to support and implement unethical practices like cramming?
What might cause employees to support and implement unethical practices like cramming?
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Study Notes
Overview of Ethics
- Integrity is emphasized by the quote from Polonius in "Hamlet," which underscores being true to oneself as foundational to honesty with others.
Unethical Practices in Telecommunications
- Consumers face ongoing frustration with unclear and often unauthorized charges on their cell phone bills, highlighting a need for ethical practices in billing.
- In 2014, the FCC penalized AT&T Mobility with a $105 million settlement for "cramming," a practice that involved placing unauthorized recurring charges on customer bills.
- Cramming often included charges for premium services like ringtones and horoscope texts, which consumers unknowingly subscribed to, incurring fees up to $9.99 per month.
- Customers found it difficult to identify these charges due to the way AT&T grouped miscellaneous fees on bills.
- When complaints were made, AT&T typically offered only partial refunds for the cramming charges.
Regulatory Actions Against Major Carriers
- In 2015, AT&T faced an additional $100 million fine from the FCC for misleading advertising related to "unlimited" data plans, involving data throttling after a usage threshold was met.
- T-Mobile USA was fined $90 million in late 2014 for similar cramming practices, ignoring complaints for years.
- Verizon and Sprint received fines of $90 million and $68 million respectively in 2015 for billing customers without their consent for third-party texting services.
Ethical Considerations in Corporate Practices
- Employees responsible for unethical practices like cramming may have started with good intentions and ambition, raising questions about how organizational culture can lead to unethical decisions.
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Description
Explore the foundational concepts of ethics in this quiz based on Chapter 1. Delve into key themes such as integrity and self-truth, and reflect on their importance in moral philosophy. Prepare to engage with significant quotes and their implications.
