Magic jack - monitoring calls

Upon paying your yearly fees “Magic Jack” suspended my service as I am talking too much on my phone.

Does a phone provider have that right? Once you have paid your fees.

Also, they are telling me I am abusing my phone as I speak daily to a friend in Canada.

They want me to pay more money telling me I am calling 50 different phone numbers which is untrue.

They cut off service after it was pre-paid? Tell them you want service restored ASAP or your money back ASAP. Also tell them you will lodge a complaint with your states PUC (public utility commission) about Magic Jack leaving a paid customer without 911 access.
Do lodge the complaint with the PUC anyways.

For what it’s worth, from their Terms of Service:

http://www.magicjack.com/TOS/

I post this for informational purposes only, not saying anything about the legality or ethics of the TOS.

Well, Magic Jack isn’t a regulated phone service, so I don’t think it has to provide 911 access. This is probably the TOS provision they say you’re violating:

If you’re really not calling more than 50 different numbers per day (or using it 20 times more than the average user), you might be able to dispute it with them, but since they say that they’re reserving the right to terminate the service at their sole discretion, maybe not.

Oh, and looking further:

So, even if you weren’t doing anything wrong, you agreed when you signed up that they were free to terminate your use of the service at any time with no refund to you.

Awesome business mode, take money and cancel service. At this point I would go to every possible forum that discusses Magic Jack and relate your story as a cautionary tale to current and future potential customers.

I don’t understand what their motive is. I am genuinely curious if they have any costs that will cause them to lose money if a customer is using the service way more than average. They have some infrastructure to support but it is internet based and I wouldn’t think they could pinpoint individual customers that are costing them money. Most businesses of that type have a few customers that use their services way more than average but it is built into the overall business model and not cracked down on outside of true abuse. It is good advertising to have a few people getting a really good deal for the money they paid. Magic Jack is built on the idea that phone calls can be essentially free after some upfront costs from the customer and the customer’s willingness to provide the computer and the internet connection to make it work. They aren’t a real phone company.

Shagnasty, take a look at this Forbes blog article for a summary of Magic Jack’s future revenue problems. The quick explanation: The company related to Magic Jack who collects money from calls terminated on AT&T’s network was declared not to legally be able to collect that money.

If a lot of the OP’s calls terminate in AT&T country, Magic Jack’s costs go up, and you can see where this logically ends. It may not be right but it could be an explanation.

I can’t imagine that any court would hold that to be a valid contract provision in an adhesion contract such as this. Problem is that you would have to sue them for the $30 they charge and by the time a class action gets started, they will likely be belly up.

How about this: Pay me $200 and I will mow your grass for the next two years!*

*I reserve the right to not mow your grass and you can’t get a refund.

Ah yes, but just a few weeks ago the Supreme Court essentially ended consumer class action suits against corporations. It appears they were too much bother for the Court’s primary constituency.

There’s a message board I post at that has a similar rule:

Here’s their Subscriber agreement

Post a review here.
http://badbusiness.org/

That’s pretty lame for a TOS. You can use it, but only a little or we’ll just take your money and cancel your service.

Those stories are already out there. There are whole sites dedicated to the subject. All of the major consumer electronics magazines/websites have covered MagicJack. So have mainstream sources like Consumer Reports. None of what the OP says is new or unique.

Caveat emptor. You pay $20 for a year of VOIP, it’s gonna have drawbacks and limitations. There are plenty of good alternatives, like Vonage and Skype.

As far as the OP, if you only bought the device recently, try to get your money back. If you’ve had it a long time, maybe try to get a chargeback for your most recent yearly subscription fee.