Peter Duncan started a small Internet company that specializes in cleaning up websites that have been hacked. Peter explains to potential customers that he charges $350 to go into a site and clean up whatever the hackers have done. When he is finished, he notifies the customers by e-mail that their site is now clean. However, Peter changes the password accesses to their site and explains to the customers that he cannot release the passwords to them unless they sign up for the $99 annual package that will keep their sites clean and eliminate any problems with subsequent hackers. The customers cannot gain administrative access to their sites without the passwords. Peter explains, "They need help. I fix what's wrong, but I also help them going forward because without a package, they can't keep their sites clean." Which of the following statements is correct?
A) Peter has engaged in deception in his pricing.
B) Peter is just using an effective tool for retaining customers.
C) Peter has framed the issue for the benefit of his customers and is not doing any harm.
D) Both b and c

Question

Quizplus · Accepted Answer

Peter's actions are deceptive because he does not disclose the full cost of his service upfront, including the requirement to sign up for an annual package to regain access to their sites. This lack of transparency about the total cost and conditions can be considered deceptive pricing.

Peter Duncan Started a Small Internet Company That Specializes in Cleaning