Fair or Fraud: Hotels Block WiFi, then Gouge Customers

Contractors at a convention center have been fined $718,000 for blocking visitors from using their own mobile data services. Meanwhile the Hilton chain has been fined $25,000 for obstructing an investigation into similar claims.

The Hilton case began with allegations that the chain's hotel in Anaheim, California used blocking technology to stop users operating mobile hotspots. Those are portable devices which receive a cellular data signal (similar to that used to get Internet access on a smartphone) and turn it into a WiFi signal, which can then be used on laptops or smartphones.

A complaint investigated by the Federal Communications Commission says the hotel accompanied this block by charging customers an eye watering $500 for WiFi access during their stay. Additional complaints said similar blocks took place in other Hilton hotels.

At this time last year, the FCC asked Hilton for details of any policies its hotels regarding wireless Internet access. The commission has yet to receive the relevant documents and has issued the fine in the hope of forcing Hilton to respond. It's important to note the FCC has yet to rule on whether the Hilton chain did block signals and whether such an action broke any laws.

Firm Charged $1,000+ For WiFi Access

Meanwhile the FCC has proposed a hefty fine for a company that did block mobile hotspots at the Baltimore Convention Center. MC Dean Inc, which provides WiFi at the facility at rates sometimes exceeding a thousand dollars per user per event, admits it did carry out such a block. However, it argues such an action is not illegal. (Source: fcc.gov)

The FCC disagrees and has proposed the $718,000 fine. MC Dean now has 30 days to formally object to the fine.

1934 Law At Center Of Dispute

It's the FCC's contention that deliberately blocking a WiFi signal is a violation of section 333 of the Communications Act, which reads "No person shall willfully or maliciously interfere with or cause interference to any radio communications of any station licensed or authorized by or under this chapter or operated by the United States Government." The main legal argument is whether that section - originally written in 1934 - is applicable to WiFi. (Source: cornell.edu)

The FCC has previously fined three companies, most notably the Marriott chain, large amounts for blocking mobile hotspots to force customers to pay for their own WiFi access.

What's Your Opinion?

Should hotels and convention centers be allowed to block mobile hotspots? Is this unfair interference with customers' communications? Or is it a case of "if you don't like it, stay or visit elsewhere?"