04-06-2011, 03:30 PM #1Web Hosting Guru
- Join Date
- Dec 2004
interesting view of the hosting market and Overselling practices
After reading this
and then that
I got the feeling that this guy just hit in the center of the issue. And after reading carefully both articles I do deduct, from the rules in wikipedia, that hosting would fall directly into this market category: a 'lemon market'
I did follow the wikipedia links and according to this article about the 'lemon law', http://en.wikipedia.org/wiki/Magnuson-Moss_Warranty_Act, this law done for the used car market could be applicable to the hosting market.
I would say that if we apply common sense and asume that hosting can be considered a lemon market, a lot of hosting providers are in fact, unknowingly, falling into liabilities for the service provided, because of the 'implied warranties' that can be claimed by a customer if purchasing goods in a lemon market. 'fitness for a particular purpose' could be one of those: under this legal concept, overselling would be , plain and simple, illegal.
Interesting, don't you think?
P.S. yes, I know. I was a bit bored, today the servers are really calm and internet seems empty
04-06-2011, 03:38 PM #2Web Hosting Master
- Join Date
- Feb 2010
- Maryville Tennessee
In the end, it is up to the customer to decide how the market swings. If they continue to support these "Lemon Companies" then then nothing will change. Simple when put in perspective.
04-06-2011, 04:19 PM #3Web Hosting Master
- Join Date
- Feb 2002
- New York
very interesting articles. However looking at the Magnuson-Moss_Warranty_Act wiki I would think that it would not apply to many hosts or a portion of some hosts services. If I am reading it correctly it says that the act only applies to products actually costing the consumer more than $15 and many hosts including the big boys like Godaddy charge less then that per month.
Also I disagree with the statement
It's companies like GoDaddy (and many others) that are setting the bar low (as well as the price)
We also know there are many websites that for a price will give you a fake award to promote yourself with. Heck there are even sites that for a fee people will post fake testimonials about you (check out fiverr.com)
The issue is as an industry we are allowing and helping the market to be flooded by people who don't have the needed knowledge or financing to properly staff and support a hosting service provider company. So even if we had laws/acts that are in forced by the FTC what difference would it make. There are still a 100+ people who have a website they sell website hosting through and make claims they in no way can fulfill and that are not true.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
just a programmer
04-06-2011, 04:19 PM #4Web Hosting Master
- Join Date
- Apr 2003
- San Jose, CA.
Liability Limitations: Client acknowledges that service provided can be interrupted for many reasons other than negligence of AcmeCo. Client agrees that AcmeCo shall not be liable for any damages arising from any causes beyond the direct and exclusive control of AcmeCo. Client further acknowledges that AcmeCo's liability for its own negligence may not in any event exceed an amount equivalent to the charges payable by Client for services during the period damages occurred. In no event shall AcmeCo be liable for any special or consequential damages, loss, or injury. AcmeCo is not responsible for any damages your business may suffer. AcmeCo makes no implied or written warranties for any services. AcmeCo denies any warrany or merchantability for any specific purpose. This includes loss of data resulting from delays, non-deliveries, wrong delivery, and any and all service interruptions caused by AcmeCo.
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