Re: Mr Rogers on Externalities

[David Farber <dave () farber net>]

________________________________________
From: David P. Reed [dpreed () reed com]
Sent: Tuesday, March 25, 2008 12:18 PM
To: David Farber
Cc: ip
Subject: Re: [IP] Re:  Mr Rogers on Externalities

Note that there is precedent for class actions for overstating what one
delivers.   Past examples:

1)  The diagonal measurements of color video picture tubes were
overstated by about 10% compared to their actual measurements, largely
due to marketing "stretching" of the truth across the industry.  That
did NOT save the companies from losing the class actions, for huge damages.

2) Recently, the number of "megabytes" of hard drives was stretched
(again by 8-10%), compared to the actual addressable storage capacities,
and also the use of misleading units.  That class action may still be
going on - I don't track it.

Truth in advertising is not a joke to be ignored.

ISPs who deliberately underprovision customers actually run a huge
risk.  On the other hand, there is a risk in being too "truthy" -
customers will buy a strong brand that promises more than it delivers
over a weak brand that tells the detailed truth.   Truthiness can lead
to business weakness.

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