The Issue Of Consumer Fraud Essay

The Issue Of Consumer Fraud Essay

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Rating: Strong Essays

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During the summer and fall of 2014, Sirius XM, an American satellite radio broadcasting company, was found guilty of consumer fraud. The company’s means of fraud included, but was not limited to, misleading advertisements and unfulfilled promises. After many consumer complaints, the issue was taken to court. There, 45 United States Attorney Generals announced that Sirius XM Satellite Radio was guilty of misleading, unfair, and deceptive practices which violated state consumer protection laws (Hood, 2014). During the act of defrauding customers, the company also engaged in unethical business behaviors. Due to the fraudulent and unethical decisions and actions made by Sirius XM, the company will most likely forever be looked at through a different light.
Key Issues
The issue of consumer fraud is becoming much more prevalent in today’s society. And sadly, one of the favorite gadgets of the twenty-first century has become the largest enabler of this issue: the internet. With internet access available to almost everyone, everywhere in the United States, consumer fraud has grown exponentially throughout the past few years. In fact, data released by the Internet Crime complaint center (A combination of the FBI, the National White Collar Crime Center, and the Bureau of Justice Assistance) stated that in 2008 alone, 275,284 consumers claimed to have been victims of internet-related consumer fraud. The Internet Crime Complaint Center also estimated that $265 million dollars that year were linked to online fraud (Xiao & Benbasat, 2011). The idea of consumer fraud may sound simple, but the term is an umbrella, as there can be many different actions which can be considered consumer fraud. Despite the fact that many different businesses and c...


... middle of paper ...


...rius XM and other online businesses alike to show how extensively consumer fraud negatively affects both businesses/service providers and their consumers.



References
Ferrell, O. C., Fraedrich, J., & Ferrell. (2012). Business ethics: Ethical decision making & cases.
Hood, J. R. (2014, December 4). Sirius XM to pay $3.8 million to settle misleading advertising claims. Retrieved November 9, 2015, from ConsumerAffairs website: http://www.consumeraffairs.com/news/sirius-xm-to-pay-38-million-to-settle-misleading-advertising-claims-120414.html
Jacoby, L., & Meyers, S. (n.d.). Questions about consumer fraud. Retrieved November 10, 2015, from Jacoby & Meyers Law Offices website: http://www.jacobymeyers.com/questions-about-consumer-fraud.html
Xiao, B., & Benbasat, I. (2011). Product-related deception in e-commerce: A theoretical perspective. MIS Quarterly, 35(1), 169-196.

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