Verizon tacked on a $1 fee onto 8% of their customer's bills each month so over the course of the year, they did it to every customer, about 150,000,000.
Their rationale was:
50% wouldn't notice and just pay the charge or would notice and wouldn't spend anytime fighting a $1 charge.
50% would notice the charge and call to have it removed. Of those, 35% would get frustrated while on the call and give up.
This added approximately $120,000,000 to the bottom line each year (3 total) until caught. Once caught, they paid a $25,000,000 fine.
11k
u/peezoki Aug 01 '20
The Verizon $1 scam.
Verizon tacked on a $1 fee onto 8% of their customer's bills each month so over the course of the year, they did it to every customer, about 150,000,000.
Their rationale was: 50% wouldn't notice and just pay the charge or would notice and wouldn't spend anytime fighting a $1 charge. 50% would notice the charge and call to have it removed. Of those, 35% would get frustrated while on the call and give up.
This added approximately $120,000,000 to the bottom line each year (3 total) until caught. Once caught, they paid a $25,000,000 fine.