The Federal Trade Commission is currently going after large corporation and a major cell phone provider for their anti-spam practices. Verizon Wireless is the subject of a lawsuit against them by the Federal Trade Commission. This lawsuit involves the Verizon Wireless’ refusal to work with the Federal Trade Commission on bulk text message marketing. In its efforts to prevent the Verizon Wireless from participating in this type of advertising it demanded that the carrier provide specific assurances that they would not engage in any anti-spamming practices.

In the past Verizon used a ‘managing’ agent to sign up people for their mobile, wireless calling plans.

The ‘managing’ agent made sure the customer would purchase Verizon’s products and services, while he (the ‘managing’ agent) received a kickback from Verizon for his efforts. Verizon then charged the ‘managing’ agent commission for his efforts. Now the FCC is attempting to have this illegal practice thrown out. They argue that because Verizon Wireless was not directly getting payment from the customer for the sales he was facilitating there was no way for Verizon Wireless to receive ‘commissions’ for the ‘managed’ calls.

Verizon Wireless is also being accused of intimidating customers and employees into selling their products and services through Verizon Wireless.

A Verizon Wireless sales person who was employed by an individual at a store also participated in a conspiracy with another sales person to ‘manage’ the customer and in turn, convince him to buy from Verizon Wireless. The complaint further states that many times the customer wouldn’t even know that he or she was being pushed a Verizon product by the ‘managing’ agents. As part of the conspiracy the company would also send the ‘managers’ gifts and cash incentives for signing up more ‘customers’.

The fact that Verizon was involved in a conspiracy and used deception in order to charge an additional fee is what has caused all the trouble.

But even if there was no actual wrongdoing on the part of Verizon Wireless, the lawsuit is still relevant because it shows the tactics that companies use when engaging in a ‘managing’ relationship with a customer. Many companies will tell a customer that they will only charge them a flat fee for a specified number of minutes. Many companies will then charge a monthly fee for usage. This is just good common-sense; it is what every other company would do if they were trying to avoid having to deal with a customer who is constantly asking for more money.

In fact, Verizon Wireless was well aware that they were improperly charging their customers for minutes. Yet they did not change their practices, so now they are caught in a huge mess. The question now becomes whether or not the Court will allow the case to proceed. Currently there appears to be an order of default, which would mean that there is nothing that the company can do to reverse the damages that they have been subjected to. This is the reason that Verizon Wireless has decided to file a lawsuit against them.

It is highly doubtful whether or not the Court will allow Verizon Wireless to file this lawsuit. They likely will deny it and attempt to get the case thrown out. However, the benefits of the case are likely to be far greater than the cost of fighting it in the Court. If Verizon Wireless wants to regain their reputation back and become a company that truly values their customers, they will have to come to an agreement with the Federal Trade Commission about their future practices.