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marmar

(77,056 posts)
Fri May 24, 2013, 11:24 AM May 2013

It’s Called Deceptive Price-Gouging


http://www.workinglife.org/2013/05/23/its-called-deceptive-price-gouging/


from the Working Life blog:


It’s Called Deceptive Price-Gouging
Posted on 23 May 2013.


Is there a website for corporate-speak slogans that are simply covers for robbery? Must be. If not, there should be — and AT&T’s “administrative fee” has got to take an honored place on the list.

C’mon, say this with a straight face:

AT&T Inc. has added a new monthly administrative fee of 61 cents to the bills of all of its contract wireless lines as of May 1, a move that could bring in more than a half-billion dollars in annual revenue to the telecom giant.

Other carriers also have so-called “below-the-line” fees, named that because they frequently appear at the bottom of the phone bill after the service charges. Such fees help boost revenue growth in a massive organization, but consumer groups criticize them because they are less likely to be noticed by users and allow carriers to advertise lower prices than they actually charge.

“Below-the-line fees are nothing more than a way for carriers to stealthily increase their prices,” said Derek Turner, research director at Free Press, a public interest group. “AT&T’s administrative fees are no different than the hundreds of other components that go into the cost of doing business,” he said.


“Administrative fee”? No, this is stealth robbery. Dishonest. But, of course, the company will get away with it.


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liberal N proud

(60,332 posts)
1. I thought this was going to be about the ridiculous price gouging by the oil companies
Fri May 24, 2013, 11:26 AM
May 2013

that they do near holiday periods.

TreasonousBastard

(43,049 posts)
2. 61 cents on a phone bill? How about doubling your electric bill...
Fri May 24, 2013, 11:41 AM
May 2013

After the scandal-ridden Long Island Lighting Company was dissolved, we got LIPA, National Grid, and a few other entities digging through our pockets to keep the lights on. Here's a sample bill to show how 8.5 cents a kilowatt gives you bill of $175:



Click here for the humorous explanation of the charges:

http://www.lipower.org/residential/account/your-bill.html

TreasonousBastard

(43,049 posts)
5. $3.66 (OK, that's not funny)...
Fri May 24, 2013, 11:49 AM
May 2013

It's Payment In Lieu of Taxes. Some deal they made with the county, probably for using county land to put up utility poles but with these guys who knows...

TreasonousBastard

(43,049 posts)
6. Beats me. Click the link and see if you understand their explanation...
Fri May 24, 2013, 11:53 AM
May 2013

There were many, many screwy deals made. LILCO was once the largest private electric company in the country and then found to be the most crooked. The new entity is full of legacy tweaks.

FWIW, it's so bad now that PSE&G in New Jersey is about to take over it's operations.

Autumn

(44,986 posts)
7. Kind of like that extra nine tenths of a cent you pay for gasoline?
Fri May 24, 2013, 12:02 PM
May 2013

Off topic but I was thinking about that yesterday while waiting for a gas pump. that has to add up.

AndyA

(16,993 posts)
10. I noticed they can only manage to actually read the meter every other month
Fri May 24, 2013, 01:08 PM
May 2013

Then they make constant adjustments to correct--complicates things and some people probably never really know how much power they actually use.

Why can't they use wording that's easily understandable? Revenue-based PILOTS? What is that, the fees they charge for their corporate aircraft pilots? The more revenue, the more pilots they can have for executives?

Last time my electric bill was "estimated" they just DOUBLED the charges from the prior month. My usage had actually dropped for that period, so it took two months for the credit to be used up completely. Now they want to raise rates again, and they can't even read the damn meter and charge customers accurately.

AndyA

(16,993 posts)
11. Additional thought: AT&T is one of the worst.
Fri May 24, 2013, 01:12 PM
May 2013

I discontinued all of my AT&T services years ago. They have horrible customer service. They tried charging me for stuff six months after I'd stopped everything. Calling them got me nowhere, except over two hours on hold waiting to talk to someone. Then, you'd get disconnected. I truly believe they mark your phone number as a "problem" and intentionally help others first, hoping you'll just hang up and pay the bill so you don't get sent to collections.

Finally, I filed a complaint with the FCC and sent them all the documentation. In short order, I received an apology from AT&T and my account was credited to show zero due. The FCC followed up to make sure everything had been taken care of as well.

Just don't do business with AT&T. They helped Bushco spy on everyone, and taxpayers paid them huge amounts of money to administrate the spying! AT&T is one of the worst corporations in the world, stop sending them your hard-earned money.

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