****************************
QUESTION
****************************
Ken,
Last week my wife and I stopped for frozen yogurt at one of these self serve yogurt joints. Just like many other businesses I saw cameras but this store was different. The owner had microphones by each camera. They were no bigger than a silver dollar. I saw no signs indicating the store was under surveillance nor was audio used.
Is this legal?
Thank you,
John Romero, President
Keystone Security Systems
Rochester, New York
**************************
ANSWER
***************************
The store can have the cameras, but not the audio listening or recording devices. Signs won't make a difference. It's illegal.
***************************
QUESTION: T-MOBILE SOLICITATION
*************************
Ken,
Was reading the local newspaper (yes, I’m still old school) and saw an ad from T-Mobile cellular that says “Break-up with your carrier, we’ll pay your family’s termination fees.” What they do is cover the termination fees with a pre-paid Visa and then the customer trades in their existing device. They will pay up to $350 per line.
I may be wrong but I believe I have read something about “inducement to break a contract” in your forum and how that can land a company into trouble. But after reading the full page newspaper ad by T-Mobile it has me wondering if they are playing with fire or if it is a brilliant and bold move?
Thoughts?
Jay Hunt, President
Allied Fire & Security
***************************
RESPONSE
****************************
Not so sure it's brilliant or bold. Not too long ago a central station advertised that it would give reduced rates if you switched from a specific central station to its central. The ads targeted a few different centrals. I don't know how that campaign went but I do know it stopped.
Inducing breach of contract is difficult case to win for a number of reasons I have discussed in previous articles. One issue that T-Moblie is counting on is a court, if it gets that far, finding that once the contract with the original carrier is expired the customer is fair game; up for grabs. Since T-Mobile is paying off the contract the argument goes that there would be no damages. The counter argument is that businesses with long term contracts with recurring revenue [like the alarm industry] count on continued business, relations and revenue from customers long after the contract term has expired. It's called "good will" or in the alarm industries case, "automatic renewal".
****************************