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Subject: [IP] Re: No iPhone Without Credit Card




Begin forwarded message:

From: Colin Hill <hillct@scoophost.com>
Date: October 29, 2007 5:28:15 PM EDT
To: dave@farber.net
Cc: lauren@vortex.com
Subject: Re: [IP] No iPhone Without Credit Card

Dave,Lauren,
   IANAL, however I did a little research into this area of law due to
an experience I had many years ago as a student traveling through
Boston. Due to bad weather I had to stay at a local hotel (name withheld
to protect the guilty). The manager indicated there was a room available
but when I told him I'd be paying cash, he refused to provide me a room.
My reaction was much as yours - how can they refuse to accept cash as
payment? Well, as it turns out, refusing service very much distinct from
refusing cash as payment of debt. I ended up staying at the local YMCA,
where they did accept cash. In practice the difference is semantic but
legally speaking, any private business may refuse service to anyone not
meeting their requirements as customers - try ordering lunch at
McDonalds while not wearing shoes - as distance from providing the
service, then refusing to accept payment of the newly created debt, in
the form of United States Currency.
   There is of course the potential for more complex situations. It's
likely that a member of a protected class who suggested that they were
being refused service due to the fact they're a member of that class,
might be able to pressure the sales staff at an Apple store to sell to
them just to avoid the bad PR of a discrimination case, though the
plaintiff would likely loose such a case if brought to trial - but
again, IANAL.

-- Colin

-- Scoophost.com - a service of Pinnacle Digital
Scoop CMS consulting and hosting services

David Farber wrote:
You begrudge Steve his $500 additional profit on ATT. djf

Begin forwarded message:

From: Lauren Weinstein <lauren@vortex.com>
Date: October 29, 2007 11:42:14 AM EDT
To: dave@farber.net
Cc: lauren@vortex.com
Subject: No iPhone Without Credit Card


Dave,

In what I think may be an unprecedented move for such a device,
Apple is now reportedly refusing to sell iPhones for cash.  If for
whatever reason you're a person who doesn't have a credit card (or
debit card -- and I assume they mean a debit card tied to a bank
account, not an over-the-counter money card) -- they don't want you
as a customer.
( http://abcnews.go.com/Technology/story?id=3785374&page=1 ).

Apples claims that this is to control "unauthorized" resales, but of
course they won't be successful at that goal this way.

Perhaps of more interest, I'm not entirely sure that such a policy
is actually legal from a purchase nondiscrimination standpoint in
this case.  The entire area of requiring credit cards for goods
or services seems rather nebulous.

U.S. currency still supposedly is good for "all debts public and private."

I'm sure Apple lawyers know their stuff, but perhaps some IP readers
specializing in this area of economics could chime in with some thoughts.

Thanks.

--Lauren--
Lauren Weinstein
lauren@vortex.com or lauren@pfir.org
Tel: +1 (818) 225-2800
http://www.pfir.org/lauren
Co-Founder, PFIR
   - People For Internet Responsibility - http://www.pfir.org
Founder, PRIVACY Forum - http://www.vortex.com
Member, ACM Committee on Computers and Public Policy
Lauren's Blog: http://lauren.vortex.com




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