518
FTC fines Razer for every cent made selling bogus “N95 grade” RGB masks | Ars Technica
(arstechnica.com)
this post was submitted on 30 Apr 2024
518 points (98.9% liked)
News
22626 readers
3592 users here now
Welcome to the News community!
Rules:
1. Be civil
Attack the argument, not the person. No racism/sexism/bigotry. Good faith argumentation only. This includes accusing another user of being a bot or paid actor. Trolling is uncivil and is grounds for removal and/or a community ban.
2. All posts should contain a source (url) that is as reliable and unbiased as possible and must only contain one link.
Obvious right or left wing sources will be removed at the mods discretion. We have an actively updated blocklist, which you can see here: https://lemmy.world/post/2246130 if you feel like any website is missing, contact the mods. Supporting links can be added in comments or posted seperately but not to the post body.
3. No bots, spam or self-promotion.
Only approved bots, which follow the guidelines for bots set by the instance, are allowed.
4. Post titles should be the same as the article used as source.
Posts which titles don’t match the source won’t be removed, but the autoMod will notify you, and if your title misrepresents the original article, the post will be deleted. If the site changed their headline, the bot might still contact you, just ignore it, we won’t delete your post.
5. Only recent news is allowed.
Posts must be news from the most recent 30 days.
6. All posts must be news articles.
No opinion pieces, Listicles, editorials or celebrity gossip is allowed. All posts will be judged on a case-by-case basis.
7. No duplicate posts.
If a source you used was already posted by someone else, the autoMod will leave a message. Please remove your post if the autoMod is correct. If the post that matches your post is very old, we refer you to rule 5.
8. Misinformation is prohibited.
Misinformation / propaganda is strictly prohibited. Any comment or post containing or linking to misinformation will be removed. If you feel that your post has been removed in error, credible sources must be provided.
9. No link shorteners.
The auto mod will contact you if a link shortener is detected, please delete your post if they are right.
10. Don't copy entire article in your post body
For copyright reasons, you are not allowed to copy an entire article into your post body. This is an instance wide rule, that is strictly enforced in this community.
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
110% seems like it could be a middle ground between actually nuking the company into the ground vs. impose to little of a fine.
They're forced to give every cent back (hopefully that can find its way into actual customers hands instead of the government pissing it away) plus lose an additional 10% of whatever they made that is now a loss on the company financials. Shareholders wouldn't like a loss on their spreadsheets and quickly fire whoever was in charge or sell. It's bad for the business, the stock market, and the economy.
It would quickly train the stock market to deter that kind of behaviour. But we need politicians who are not bought by these companies to be able to pose these strong fines across the board.
10% loss on something on the scale of the likes of what someone like Apple or cough Tesla cough brings in on products would add up very, very quickly. More money back into people's products going back into the economy in the form of more spending anyway, which is good, and more tax revenue that the government might one day learn how to spend efficiently and dilligantly, since the government would keep the 10% loss, I'm sure getting that 110% out of the company takes work, time, and spending anyway.
Capitalism only works with extremely tight regulation. And humans can corrupt that regulation very quickly.
"However, the proposed settlement against Razer includes a $100,000 civil penalty, plus $1,071,254.33, which the FTC said is equal to the amount of revenue Razer made from the Zephyr and will go toward refunding "defrauded consumers."
Fucking. Yes. The money goes back to the customers. Hopefully, every last cent.
"go toward" doing some heavy lifting there. Watch them get a few bucks each and the rest goes towards legal fees.
I don't disagree with your overall argument but, if they're fined 100% of revenue, that's way less than zero profit (because they've still paid to make, distribute, and recall the things).
Fines should, of course, always be more than the profit made. 3x is a good number.
Yea this time 10% equals 100k which might as well be nothing in the scheme of things. It might hurt Razer but they can probably eat it since this mask wouldn’t have been a large part of their revenue compared to the 40 other products they make and sell a lot of. I still like to see this type of punishment being filled out and hope it is used against some of the larger flagrant frauds you mentioned