The FCC's
E-Rate program provides many schools around the country with money to support their computer networks. It also provides opportunities for private tech companies, who can bid for school contracts under what's supposed to be an open and fair process. Hewlett Packard, however, recently came under fire for allegedly bribing certain school officials with lavish gifts in an attempt to rig the competition. And, although the company steadfastly denies the allegations, it has now agreed to pay
$16.25 million to make the case go away.
The settlement effectively concludes an
investigation originally undertaken by the FCC and the Department of Justice, who decided to take legal action after being tipped off by whistle-blowers in the school districts of Dallas and Houston. "Meals and entertainment -- including trips on a yacht and tickets to the 2004 Super Bowl -- were provided by the contractors to get inside information and win contracts that were supposed to be awarded through a competitive bidding process," the FCC said on Wednesday, while announcing the settlement.
According to the agreement, HP must now pay $7,402,441 for a contract it won with Dallas schools, and $8,847,559 for its Houston contract. HP also agreed to implement a
compliance program, which will help train its employees on how to engage in the bidding process without violating E-Rate's rules.
Despite the government's conviction that HP was "conspiring to rig the competitive bidding of E-Rate contracts," the company refuses to admit guilt in the matter. "This Agreement is neither an admission of liability by HP, which denies the claims described above, nor a concession by the United States that its claims are not well-founded," the settlement reads. In a statement provided to Ars Technica, the company emphasized this sentiment, and reiterated the fact that the case is now over. "The activities at the center of this investigation occurred more than five years ago, the partner relationships have been terminated and the employees involved are no longer with the company," HP said in a statement. "HP fully cooperated with the authorities and the
matter is now resolved."
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Anti-Corporate Protests & Boycotts
Apple Pulls "You Can't Be Too Thin" Ads
In 2007, after airing an ill-advised
ad campaign for their new line of iMacs that featured the tag line "You Can't Be Too Thin," Apple received innumerable complaints, including one from the Alliance for Eating Disorders Awareness. The ads were promptly pulled.
Motrin Ad Pulled Due to Online Protests
In November of last year, mothers took to the Twitter-streets in protest of a Motrin video advertisement that, they claimed, belittled young mothers. In no time, Johnson and Johnson took down the ad, posting a letter of apology.
Apple Pulls "You Can't Be Too Thin" Ads
In 2007, after airing an ill-advised ad campaign for their new line of iMacs that featured the tag line "You Can't Be Too Thin," Apple received innumerable complaints, including one from the Alliance for Eating Disorders Awareness. The ads were promptly pulled.
Boycotting Sellers Dent eBay's Business
In February of last year, eBay sellers banded in a boycott after the Web site laid claim to higher commissions on sold goods and eliminated sellers' ability to give negative feedback to buyers. In just one week, eBay's listings dropped by 13 percent.
Students Stage Virtual Protest on Facebook
Disturbed by HSBC's suspension of their free overdraft protection, collegiate customers of the bank launched a Facebook protest in 2007. Backed by the National Union of Students, the online protest won out as HSBC decided to maintain the policy.
Facebook Lactivists Take Protests to the Street Over Breastfeeding Pictures
Last month, self-described "lactivists" set up shop outside Facebook's headquarters to protest the site's removal of all images containing breastfeeding mothers.
Tags: bidding, bribery, e-rate, FCC, hewlett-packard, hp, lawsuit, money, politics, school, settlement, texas, top
Comments
6
Subscribe to commentsAbraxusNov 14th 2010 9:21AM
Yes, HP must endeavour to train its staff to follow the rules in fair business practices, afterall, we don't all KNOW instinctively that bribing someone to get confidential information isn't wrong!!!! Another example of the whoops, we got caught mentality - in other words it's OK to do this so long as you don't get caught, as in college sports, business, etc, etc!
maxiesmom067Nov 14th 2010 12:01PM
@Abraxus : And when they ftnally DO get caught, they get an unbelievably LOW fine. $16.25 million to a company such as HP is a mere wrist slap. They'll probably just fire a slew of minimum wage assembly workers (right before the holidays) to recoup. What I'd really like to know is who ultimately benefits from that money? Will it actually funnel back into the schools that were supposedly 'harmed' by HPs actions, or will our disgustingly bloated, out of control, spend-crazy government scarf it up to line their own pockets?
Deaconeagle8949Nov 14th 2010 9:23AM
This is really teaching these people that it is OK to lie, cheat, steal and bribe. If they do get caught then they just put their lawyers on the case and delay, delay, delay. Then when the lawyers realize that there is no way they can win the case they advise the company to pay the piper and everything is OK. Don't worry...we will still make money, just not quite as much. Of course the reason they do it is that everyone else is doing it or so they say. However, everyone else is doing it because they are doing it. So now everyone is happy. The school officials got to go to the Superbowl. The government did their job. The students got their laptops and HP is still making a fortune. Something ain't right. How about a law that says if you bribe someone to get a contract you spend a year in prison at hard labor. Then when your boss tells you to bribe someone you'll get it in writing and signed. Use that as your get out of jail card to get the real crooks higher up the chain of command. Get them in prison and make honest men out of them. Why is this happening? Why is American losing its moral compass? Why is white collar crime rampant? First probably are our laws. When a crook robs a bank with a gun he probably doesn't get much to begin with. Maybe he can support his family for a few years at most. If he's smart he knows that if he gets away he stands a chance of never being caught. However he knows it will be many years in a dirty over crowded prison if convivted.However a scam artist like Bernie Madoff can ruin thousands of peoples lives and when caught and convicted he will only get a few years in a summer camp of a prison. The Enron folks who set out to make billions from doing nothing but scamming good people are sweeping and mopping when they should be making little rocks out of big ones. It's a fact. These embezzlers and scam artists and bribers are thieves big time. They steal from the poor and give to the rich; themselves. They know they probably won't get caught, arrested or convicted. If they do they can make a deal or a trade or if old enough pull a 'Dartois' which is dieing after conviction but before serving a day. Then if they do go to prison it will be a summer camp of minimum security...a vacation of sorts. Three hots and a cot, sweep a little, mop a little and sleep a lot. So do your time and keep thinking of all those millions in that swiss account. Easy time for those who can get it. However, the biggest reason is that these men and women grew up without guidance and a good moral background. They never learned about God and the 10 Commandments. Their parents never took them to Church. Their teachers never gave them the moral guidance they needed because the state was forced to remove any resemblance of organized religion from state schools. The teachers had few morals themselves because of the same situation. University professors taught them that the only way to keep score in the business game was with dollars and that to take them from others any way they could. So cheat, steal, lie, bribe and don't get caught. Where the business community should be dealing with how many people can they help. With that profits will come and white collar crime will be only a part of history. To those that who do get caught give them real punishment so that others will not repeat the process. When your boss tells you that the only sure way to get this contract is to bribe an official then just remind him that there a lot of big rocks that are needed for road gravel. You won't do it and he had best not even suggest it.
AbraxusNov 14th 2010 9:25AM
Oops, think there might be a double negative in there somewhere - basically we DO all know bribing someone to get info is wrong, but some people just choose to ignore ethics and break the law anyway. Sorry, clarity on a Sunday morning is a tough thing to achieve!
ramrod2Nov 14th 2010 12:13PM
Why don't they look into the deals that HP supposedly has with Staples? It all comes down to $$$$$$ and LACK of honesty and integrity. It is RAMPANT in this country and getting worse. One CEO is as bad as another! Just that HP seems to HIRE all the bad ones!
Jerry6Nov 14th 2010 5:13PM
When I read that, after HP fired a couple of thousand employees, they reported an increased profit for the year that just happened to match the total salaries of the fired employees, I decided that I had had enough of their anti American policies. I will never buy another HP product, and as I need replacements for my present equipment, they will not be HP. (I quit buying their over priced ink cartridges long ago and refill them myself at a considerable savings.)