A California company has been fined $1.2 million by the Federal Trade Commission for charging customers with violating the Federal Communications Commission’s “unfair business practices” law.
The FTC alleges CCCAM server provider GigaWifes, which operates in 14 states, illegally billed customers for free wi, which it said were intended to be “paid for with credit card and debit card purchases.”
The FTC said in a complaint that CCCams customers were tricked into thinking they were paying for wi-Fi when they were actually receiving the service through a third-party provider.CCCams did not immediately respond to a request for comment.
The FCC says the company was “unable to provide a satisfactory explanation” for charging the customers, and that it found the conduct “unjust and deceptive.”
GigaWifi, which has been accused of violating the FTC’s Unfair Business Practices Act, was fined $5,000 by the agency.
Giga Wifi’s owner, Michael L. Kostin, told The Huffington Pundit that his company would appeal the fine.
“We’re going to appeal, we’ll see what happens, and then we’ll just move forward,” Kostan said.
Kostin said his company has also hired outside law firm Edelman to handle the appeal.
The company’s founder, Michael Kost, told HuffPost Pundito that he hopes the ruling sends a message that “we are not going to continue to do business with people who are going to use these tactics.”
Kost said he believes consumers should be able to make decisions about whether or not to use services like CCCam or other companies based on their own values and needs.
“If you want to use a service like that, you should be free to use it and you should have the freedom to make your own choices about it,” Kastin said.
“This is not a new issue with the FCC.
We’ve been in the market for about 10 years now and this is something that the Commission should be concerned about.”
The case stems from a consumer complaint filed by a New Jersey resident in 2014, who alleged she was billed $300 a month by CCCames.
The consumer said she was unaware of any complaints about the company’s services.
Cccams is a California-based company that offers “free” Wi-Fi to individuals and businesses.
The service allows users to use their mobile devices to connect to a wireless network.
The Federal Trade Commision said it was “committed to protecting consumers and the Internet from unfair business practices that can undermine the competitive and free-market principles of the Internet.”
The company was fined for its actions in March, after a complaint from the FCC was filed.
The FTC said the company failed to disclose its wi-fa fee practices to customers before charging them for wi, and did not disclose its waiving of certain consumer protections and terms of service.
The commission also said CCCamer had failed to notify consumers before charging the fee, and its wi network fee was based on a formula that did not account for network speed.
The CCCammers’ lawsuit argues that the commission should have known that the wi-fees were unfair because the Wi-fi company’s wi-fee model was so different from that of other services.
The suit also said that the company had “created a monopoly by charging customers for wi services that consumers were unable to use.”