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Friday, June 21, 2013

Kickbacks, Rates, and Hidden Fees in the Jail Phone Industry

Please Deposit All of Your Money: Kickbacks, Rates, and Hidden Fees in the Jail Phone Industry


“While previous research has documented the unjustifiably high calling rates in the prison phone industry, this report is the first to address in depth the many fees prison phone customers must pay. We find that meaningful regulation of the prison phone industry must stem from a comprehensive analysis of the customers' whole bills, rather than limiting the discussion to addressing the high per-minute calling rates alone” (p. i). Sections following an executive summary include: introduction; the prison phone market is broken; bringing jails into focus; commissions drive costs; tacking on fees to recoup the commission revenue; clouding transparency to maximize revenue from disempowered consumers; lack of regulatory oversight; and recommendations for solving the problem. Almost 38 cents per dollar is spent on telephone fees. Also included is the appendix “Questions for sheriffs and contracting authorities to ask of bidders for phone contracts”.

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