RIAA Shakedowns Similar To Big Retailers Shaking Down Suspected Shoplifters

from the not-so-different dept

We've talked in the past about how both DirecTV and the RIAA have used a borderline legal version of a shakedown to get people to pay them money, without them having a chance to defend themselves. The way the process works is simple. They come up with a mere slip of evidence that the person might be guilty, and then send them threatening letters offering not to sue if they merely pay up first. With DirecTV, the company used names of people who had bought smart card writing devices, even though such devices have perfectly legitimate uses beyond pirating satellite TV signals. With the RIAA, obviously, it was through a list of (often questionable) IP addresses. By using this method, many people pay rather than face a lawsuit -- even if they're innocent. They recognize that the cost of a lawsuit is much worse than just paying the settlement charge. In the organized crime world, this is generally known as a shakedown, or if you prefer, extortion. Yet, for some reason, it's legal when these businesses do it.

And, it turns out, the RIAA and DirecTV are not alone in doing so. Perhaps they even learned the practice by watching how big retailers approach shoplifters. Reader Josh sent in a Wall Street Journal article showing how many large retail chain stores are using a very similar process against suspected shoplifters. In the most egregious case, Home Depot detained a guy it thought was stealing drill bits, but dropped the effort after he showed them a receipt. A few weeks later, though, he received a letter demanding $3,000, which was later raised to $6,000. Admittedly, the amount is quite high there as the law firm that handled the case later admitted to a typo in entering the amount -- but the process seems quite similar to the RIAA/DirecTV process. It doesn't matter if the person is guilty or innocent. You just ask them to pay up or threaten them with a lawsuit. The retailers all insist this is a necessary process since shoplifting costs them so much -- but it's hard to see how forcing people to pay up without a chance to defend themselves is ever right, no matter how much shoplifting costs these retailers.

Filed Under: extortion, retailers, shakedowns

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  1. identicon
    gene, 7 Apr 2008 @ 6:20pm

    RIAA shakedown

    I was sued in a fraudulent lawsuit by Directv. They lied in the suit naming people I never heard of in order to sue in the first place. Not being able to defend I asked the government for help. I submitted plenty of evidence to show the suit was a sham, that they had lied to get the suit filed, that I did not do what they claimed I did.
    Government, even though this was a felony, stood by and did nothing. Worse, in the end, certain constitutional rights all American's have were taken in confidential agreement.

    Government has permitted this crime by doing nothing to enforce criminal laws violated by employees. The bigger problem here is when people now view there own government as one willing to enforce laws when it suits large corporations. Government can no longer ask anything of me until they investigate the crime committed against me.

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