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by En_gr_Student 2722 days ago
They are lying.

The only winning strategy is if the FBI does investigate, and if there is an actual penalty. Nothing less will impact the long term behavior of AT&T or any other cell company.

Seriously, it is game theory. They are saying "we will stop" because of the presence of the threat. If the threat goes away, then they are going to keep making money/selling you until the threat comes back. Like the boy crying wolf, the villagers (fbi) takes longer to build momentum for the second event than for the first.

The organization is the least common denominator, so its moral capacity is the worst of a 5 year old child. Like raising/disciplining a child, the only way to change their negative behavior is to add an expected penalty to the behavior that is larger than the expected gain, so the risk-reward evaluation they make says "don't do it".

5 comments

Surely their offer to stop is strong evidence that an investigation is warranted..
I'm not sure even a penalty will be enough, given how most of them end up being a slap on the wrist that is easily affordable.
My hope would be that even if the slap is laughably small for the current offense, the thread of larger fines for continued action would be a deterrent to keep going.

My limited experience with legal issues at large companies is that once a precedent has been set for legally risky behavior, the organization becomes extremely averse to approaching that behavior again (due to optics, legal complications, etc.). AT&T doesn't strike me as a company that cares all that much about the optics from citizen customers (as opposed to business customers), but being found to be a serial violator, i would hope, would have larger consequence.

This is why corporate fines should be based on percentages of global gross revenues, with minimums and no caps.

If your company might get fined and lose 5% of their global gross revenue for being a repeat offender, that’s likely to be a much stronger incentive.

Especially if those fines double in percentage for every repetition of the infraction.

Nothing less will impact the long term behavior of AT&T or any other cell company.

Or that of ... any other kind of company.

It's easy to find out if they keep doing it, so at least having the FBI force them to sign a statement that they stopped or XYZ happens (with the word prison on it), would be the minimum muster.
I would avoid equating raising a child with a corporation. It's a false equivalence. Positive reinforcement works way way better.