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FCC Can Finally Hammer Predatory Prison Phone Call Companies (techcrunch.com) 89

A brand-new law (awaiting only the president's signature) will let the Federal Communications Commission directly regulate rates in the notoriously predatory prison calling industry. From a report: Under the threat of having to provide a solid product for a reasonable price, companies may opt to call it a day and open up the market to a more compassionate and forward-thinking generation of providers. Prison calling systems depend on the state and the prison system, and generally have run the gamut from good enough to shockingly bad. With a literally captive customer base, companies had no real reason to innovate, and financial models involving kickbacks to the prisons and states incentivized income at all costs. Inmates are routinely charged extortionate rates for simple services like phone calls and video calls (an upsell), and have even had visitation rights rescinded, leaving paid calls the only option.

Needless to say, this particular financial burden falls disproportionately on people of color and those with low incomes, and it's a billion-dollar industry. It's been this way for a long time, and former FCC commissioner Mignon Clyburn spent years trying to change it. When I talked with her in 2017, before she left the agency, she called inmate calling "the clearest, most glaring type of market failure I've ever seen as a regulator." It was an issue she spent years working on, but she gave a lot of credit to Martha Wright-Reed, a grandmother who had organized and represented the fight to bring reform to the system right up until she died.

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FCC Can Finally Hammer Predatory Prison Phone Call Companies

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  • No Market (Score:5, Informative)

    by thsths ( 31372 ) on Monday December 26, 2022 @10:37AM (#63158462)

    I would argue that it is not a market failure, because there is no market. The system is set up as a monopoly, and it is controlled by people with a financial stake, so of course it is stacked in their interest. We should ask ourselves why those people are so corrupt, and why nothing was done about it.

    • Market (n): A meeting together of people, at a stated time and place, for the purpose of buying and selling (as cattle, provisions, wares, etc.) by private purchase and sale, and not by auction; as, a market is held in the town every week; a farmers' market. [1913 Webster]

      There is a market, and it is controlled by the prison-industrial complex. Don't get me started about trying to pay for a shirt for a prisoner or try to bail one out of jail. 25-95% of the cost of ev
      • Re:No Market (Score:5, Insightful)

        by _Sharp'r_ ( 649297 ) <sharper AT booksunderreview DOT com> on Monday December 26, 2022 @10:58AM (#63158516) Homepage Journal

        By "prison-industrial complex", do you mean, "government officials who oversee prisons"?

        They're the ones who made the actual decisions to create these sole-source contracts preventing any competition for inmate communications. You can't even give money to an inmate without going through their pre-determined vendor. It's government officials overseeing prisons steering exclusive contracts to their buddies.

        It's not a market because there is no competing providers allowed. From your definition, it wouldn't be a cattle market if there was only one seller of cattle legally allowed. That'd be a cattle store with a government-imposed monopoly, not a cattle market.

        • by mjwx ( 966435 )

          By "prison-industrial complex", do you mean, "government officials who oversee prisons"?

          "Prison-industrial complex" refers to an industry that has grown up around seeking government money with solely for profit ventures around the exploitation of incarceration. The government plays a part but the main driver is actually the private industry.

          The problem here is that there is any vendor involved. If a state were deem a person unfit to be permitted in normal society then the state needs to be responsible for the welfare and security of that person. "State" in any democratic and liberal society

          • You don't appear to realize that 92% of the prisons in the U.S. are fully government run, not private prisons.

            These issues we're discussing are issues with government prisons run by government officials, although typically things like phone services at state prisons are mandated by state level officials.

            This has nothing to do with private organizations, other than the private organizations government officials decide to turn into government monopolies. Without the government officials with the power to bene

    • Free markets don't exist without freedom. Prison isn't about freedom. Many prisons don't even guarantee access to any phones. Some won't give you anything but a limited number of stamped envelopes, pencils, and writing pads.

      Phone access and store/commissary access is a privilege that can be revoked from prisoners with disciplinary problems. It should come as no surprise that contracts are often awarded to companies run by some official's cousin or friend.

    • Just the natural result of three conservative parties and no opposition in politics. Thanks, McCarthyism!
  • Capitalism at its worst. A way of getting cheap labour out of people while the rich corrupt prison owners sun themselves on the decks of their superyachts while drinking cocktails. The hilarious part is they actually convince ordinary Americans that it's a good system and that rehabilitation is a lost cause in order to further perpetuate the success of the lucrative privately owned prison system.

    The USA has a bigger prison population that loads of other countries. It's an outlier in this regard but noth
    • by Anonymous Coward
      That's not capitalism, and that happens in about every form of governance.
    • "Capitalism" is not the term for "government created and run prison systems".

      A bunch of government officials using their office to benefit their buddies with exclusive contracts? Yes, that is typical of how government at all levels tends to work, though.

      • by dryeo ( 100693 )

        In a purely Capitalist society, government is for sale to the highest bidder.

        • In a purely Capitalist society, government would longer a be monopoly, nor be able to enable other monpolies. Providers of the services our current government supposedly supplies, like prison communications, for example, would need to compete with each other to serve their customers, rather than have a government official declare that they're the only supplier who is allowed in that niche.

          In short, government official's decisions being for sale to the highest bidder (in whatever currency - money isn't the o

          • by dryeo ( 100693 )

            I guess it depends on the definition of capitalist society. Some throw in the free market into the definition but the simplest is that the Capitalist uses their capital to control the means of production.

            • I agree, there's a bit of a disconnect on terms there.

              But even using your definition, how would government officials doing something be capitalist? There is no capital involved on the control side, it's all regulations with politicians and government bureaucrats making all the decisions. The only (minimal) capital which becomes involved are the friends of the politicians supplying a tiny bit of capital to fund a few telephones per prison and a website to collect people's money. This is hardly a capital-inte

              • by dryeo ( 100693 )

                If you think of the politicians as a product for sale, by buying them you get the regulations etc to give a very good return on your investment.

    • Have to agree. Private prisons are a terrible idea - it creates a situation where the profit motivation is almost exactly opposite of societies goals.

      The US prison system is a disgrace, but nether side of US politics has any interest in fixing it, so ts very difficult to get any reform.
    • by schwit1 ( 797399 )

      This is monopolism not capitalism.

    • "The USA has a bigger prison population that loads of other countries."

      Alternatively, the US has more people in prison than the population of loads of other countries.

  • by Papaspud ( 2562773 ) on Monday December 26, 2022 @10:44AM (#63158484)
    I spent 3 years a forced labor camp- AKA minimum security work camp- we had to pay them for room and board, AND phone calls were $1 per minutes. So after the state had taken their share, you had enough to make a 1 hour phone call every week. China has nothing on us.
    • Ever picked out a lobster at a fine restaurant?

      If you're Chinese and from a privileged class and need a transplant, look no further than the Chinese prison system. Remember how the Falun Gong practitioners have been persecuted for years upon years? Too many people were joining together to do yoga that the government feared that there could be an uprising, so they imprisoned a bunch of them. What's fresher than organs from a 20-year-old athlete? Nothing. Take your pick. Plus, they have been known to strap p
      • by Anonymous Coward

        Ever picked out a lobster at a fine restaurant? If you're Chinese and from a privileged class and need a transplant, look no further than the Chinese prison system. Remember how the Falun Gong practitioners have been persecuted for years upon years? Too many people were joining together to do yoga that the government feared that there could be an uprising, so they imprisoned a bunch of them. What's fresher than organs from a 20-year-old athlete? Nothing. Take your pick. Plus, they have been known to strap people to a table and rob their organs while they're awake. Yeah, China has nothing on the USA!

        Awwww .... America, the victim. Is there a reason why you didn't mention that one of the best customers for those organs are degenerate US capitalists?

    • by gweihir ( 88907 )

      Well, the mind-set behind this is certainly inspired by slavery and tries to emulate it as closely as possible. Makes everybody that profits and everybody that keep this system in place complete scum.

    • China has the trade in prisoners' harvested organs. It's roughly one billion dollars a year.

  • "Predatory"

    Predatory? You're in prison!

    "falls disproportionately on people of color and those with low incomes".

    Disproportionate to what?

    • You probably think that rape of prisoners is OK, too because "You're in prison!".

      There is plenty of evidence that communication with the outside world reduces recidivism. This is profiteering at the expense of society.

    • by sjames ( 1099 )

      Possibly for a 'crime' that harmed nobody and had no feature that could be considered predation.

    • by Pascoea ( 968200 )
      I assume you're of the mindset that the ONLY purpose of prison is as a facet of punishment for an offender?
  • With a literally captive customer base, companies had no real reason to innovate

    Look, it's a phone system. It's a solved technology. Even under ideal circumstances how much innovation are you expecting here?

    Yeah, the situation sucks. It sucks hard. It's predatory and victimizes the families of inmates. By all means, get rid of it any every other bit of corruption the prison system has. But even when you do so I don't think we're going to see any sort of "innovation" in prison phone systems.

    • There are legislatively rejected technologies, such as meaningful Caller-ID. It's much too easily and frequently spoofed, with no consequences who hide commercial spam, fraudulent and abusive behaviors behind fraudulent phone numbers.

  • And on top of that, an unlimited time limit. Let the prisoners talk all they want. Oh, and free unlimited internet too.
  • I'm pretty sure the scammers will be silenced any day now, just as soon as we have power from nuclear fusion.

  • No more dollars/minute phone calls, and only from one phone number (never mind that the person calling in might - let's be really crazy here - have a job, and wants to call from work).

    Wonder if the PoS Brevard Co., FL at least lets you call someone from a cell phone, or if they still require a land line to call in.

    • by PPH ( 736903 )

      or if they still require a land line to call in

      With a land line, law enforcement has a decent chance of tracking that end point of the call. That discourages gang leaders doing time from continuing to run operations from their cell. Prepaid disposable cellphones* are still a thing for anonymous calling.

      *Or sometimes, they just wait until you unlock your phone to make a call, slide a blade between your ribs, take your phone and conduct a bit their own business. If you survive, you will have to explain why that hit was ordered from your phone.

  • ...that a way to avoid this would be to not go to prison, or just completely ban all phone calls to/from prison.

    Don't like it?
    Maybe don't go to prison.

    • by whitroth ( 9367 )

      I foresee prison in your future.

      Great version of "if you're not a criminal, you don't need to worry".

      Let's just ignore crooked prosecutors (they're supposed to recuse themselves, if they have personal issues with the suspect, but the one in Brevard Co didn't, and they busted my late ex for terrorism.

      Want to bet you can't be arrested, tried, and convicted if someone in power decides they don't like you?

      If you don't think that can happen, you're an idiot.

      • by Pascoea ( 968200 )

        if someone in power decides they don't like you?

        Of if you just fuck up... But I'm sure Mr. High Horse never stole anything as a kid, never drove after having one too many beers, never got in an altercation while defending his kid/spouse/friend, etc. They probably don't understand that, in addition to punishment, prison is intended to give the offender the ability to rehabilitate and re-integrate to society. Part of a successful rehabilitation is continued contact with loved ones. But hey, the view is all rosy when you're looking down your nose. (To

      • Is it your assertion that the majority of people in prison were put there by "crooked prosecutors"?

        What percent, would you say?

  • I'm 2012 we received over 2 million dollars up front and a litany of future payments just for accepting the contract. It was my first time being a voter in an RFP and I had to ask after how can they afford all this? I was told it was a drop in the bucket, at least we had a nice steak dinner to discuss their options. Anyone involved in the IT received a brand new top of the line dell laptop so that was cool.
  • by John.Banister ( 1291556 ) * on Tuesday December 27, 2022 @02:34AM (#63160662) Homepage
    If there's no competition, then it must be a utility, and should be regulated as such. If there's more than one choice, and they collude to keep prices high, fine the companies, revoke their license to operate so that the fines are paid by selling off the equipment, and put the people who decided to collude in prison.

"I have not the slightest confidence in 'spiritual manifestations.'" -- Robert G. Ingersoll

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