very few companies will try to abuse their customers
I strongly disagree with this statement.
I think the consumer has become far too sheepish to realize when they're being duped.
Just a few examples:
Cell phone contracts. Until recently, all cell phone companies required you to sign a contract to obtain service. You were locked into a term and had to pay an outrageous cancellation fee if you went to a competitor. Most people got a subsidy on their handset for signing the contract- which makes sense... but
even if you paid full retail for the phone- you still had to sign the contract. You could not get service otherwise.
About 4-5 years ago motorola came out with a new phone called the v710. It was the top of the line phone- and the first phone Verizon carried that featured bluetooth. Now, being a tech-savvy customer, I was excited about the bluetooth features that would allow me to upload/download ringtones and pictures to/from my PC and other devices. I was already under contract, so I paid full retail price for the phone from the Verizon store ($550) only to take it home and realize that Verizon had intentionally nuetered it. They forced Motorola to ship them this phones with a custom firmware than disabled the bluetooth functions for transferring ringtones or pictures. They would not carry the phones if Motorola did not do this at thier request.
Why disable the features? So I would be forced to use thier messaging services at $.50 per picture message and $2 per ringtone.
I paid FULL RETAIL price for a phone and was ripped off. Most people who bought the phone there were not savvy enough to realize the phone hardware had features that are locked out intentionally to squeeze more money out of them. At the time (and maybe still, I dunno) Verizon would not under any circumstances activate a phone that did not come through their distribution channels. This meant that I could not even buy the phone from Motorola directly(or other carrier who didn't neuter v710) and activate on my phone number. At the time, I had been a Verizon customer for 5 years strong. My cell phone was (and still is) my primary number. To leave Verizon required that I would leave my number with them(this was before govt got involved and made them change that practice). I stayed with them until number portability went into effect- then flew like a bat outta hell!
I left Verizon, but here they still stand as still one of the most successful businesses today. I hate them with all my soul and will never go back. Were it not for government regulation, I would have had to change my primary phone number and potentially lose a lot of contacts.
Thank you, government! I recently heard that there was discussion about preventing phone companies from locking you into their handsets (so you could buy a handset anywhere and use on your account as long as the technology was compatible). This would allow cell phone manufacturers to compete directly with one another independent of the phone carrier's whims. I dont know the status of this but I hope this goes into effect.
GOVT REGULATION, FTW!
Why hasn't this happened like it would in any other industry? I think there is a very revealing answer...
Because insurance companies are suffering from the housing crash. Foreclosures are causing them to bleed customers so fast they HAVE TO raise rates and cant maintain earnings if they start slashing premiums. If you offer a better deal to the other guy's customer, eventually your customer will come asking for the same. They all know this and are not stupid.
..or are you just really old...I can forgive you if you are an old senile man
They end up as their SELLING point of the Govt. wanting to take over our health care as ....... DRUM ROLL ....... the Library!!!
