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« Muni Today: Philadelphia, Milwaukee | Main | NY Times v. Wall St. Journal on Hotel Internet Fees »
The FTC alleges Transnet Wireless Corp. has made false claims in its Wi-Fi kiosk-selling business: The company wanted $10,000 to $15,000 for a single kiosk that would serve up content via an LCD screen or via Wi-Fi. While the company said it would deliver kiosks with two weeks to 45 days, and that they would generate huge returns—$1,000 to $2,000 per month—the FTC complaint alleges that it terminals were rarely delivered, and the firm had no basis on which to make financial claims.
The FTC received a temporary restraining order against the firm to prevent it from continuing to sell the kiosks, and to freeze the assets of the firm and its principals. [link via TechDirt]
Posted by Glennf at October 12, 2005 2:11 PM
Categories: Cluelessness, Legal
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This is such a failed business model! Who even buys these things at 5-10K a pop? Every town of resonable size likely has free WIFI at coffee shops, motels, pizza joints, brewpubs, librarys, colleges, etc. Why would anyone use these overpriced rip-off wifi kiosks? Why would a business allow someone to put one of these kiosks in their place of business, like it will attract customers? These crooks in FL must sell these machines to the older generation or those that really do not understand the wifi crowd, the technology, or the culture (free wifi for all!) They must be the candy/pop vending machine crowd.....oh well.
Posted by: Greg at October 17, 2005 6:01 PM