Friday, September 24, 2010

Our view on consumer protection: When cable guys don't show, give customers some dough

USA. Today article "Our view on consumer protection: When cable guys don't show, give customers some dough" (September 22nd, 2010) is ill conceived. USA Today's editorial advocates a New York City bill to penalize cable companies when repairmen don't show.
In response to complaints about bad repair service, the city has drafted a contract with its major cable TV providers, Time Warner and Cablevision, with this provision: If a technician fails to show up inside the promised service "window," the company has to give the customer a month's service for free.
The only good news is that this gives phenomenal evidence that the government is unable to craft an effective law. It is hardly worth noting what is wrong with this sort of regulation, save to note that if this were effective, why not make cable companies pay $1,000,000 for each late repairman? One thing an economist and the government could agree on: there would be no late repairmen ever again.

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