The Cable Nation Company (\"CNC\") is a nation-wide cable TV provider for busine
ID: 2746827 • Letter: T
Question
The Cable Nation Company ("CNC") is a nation-wide cable TV provider for businesses and residential consumers. In Davenport City, CNC purchased some of its competitors, thereby increasing the percentage of its local ownership to about 75 percent. In early 2015, five residential consumers of CNC brought suit against the company, claiming that they paid too much for their cable service as a result of its recent acquisition. What aspects of consumer law does this case involve? Which party is likely to win - the consumers or CNC? Why?
Explanation / Answer
The core issue that needs examination is about the claim "that they, five residential consumers of CNC paid too much for their cable service as a result of its recent acquition." The questions and or the facts needed are about the payments made by the consumers before and after the acquition by CNC. Is the difference is substantial sum? Is it the only these five consumers and or other consumers who are required to pay more only because of CNC acquisition? Does the acquisition leads to monopoly and or dominant position of CNC and allows it to discriminate among it's consumers?
As per my understanding of the consumer law, the service provider like in this case CNC is not supposed to exploit the consumers and indulge in discriminating practices and make the consumers to suffer, even if the size or number of such consumers is small. It is important to note what are the other options available to the customers/ consumers. In the present case, can these five consumers have cable service from other sources than CNC? What is the justification of increased charges by CNC for these five consumers and or for all consumers who are effected with its recent acquisition.
Based on the answers and facts of the matter as stated above, either of the party may be the winner. In case the recent acquisition is meant for the betterment of the cable services to all the consumers effected and CNC followed a uniform charges and there is no exploitation of consumers. Further, majority of consumers and or large number of similiar residential consumers are finding the charges ( increased payments ) justified as against the cable services received, then CNC may be the winner. On the contrary, in case the consumers interest are deteriorated on account of acquisition then the consumers may be the winner.