Marriott to pay $600,000 to Resolve WI-FI-Blocking Investigation

Posted by & filed under Accounting Information Systems, Accounting Principles, All Articles, Auditing, Cost Accounting, Financial Accounting, Intermediate Accounting, Managerial Accounting, Video Updates.

In March 2013, the Federal Communications Commission (FCC) received a complaint that the Marriott convention center at the Gaylord Opryland location in Nashville, Tennessee was in violation of Section 333 of the Communications Act. After an FCC investigation substantiated unlawful use of containment features, Marriott agreed to pay $600,000.

Questions:
1. What did the FCC’s investigation find that Marriott did? Discuss the ethics of this finding.
2. Was this a fine or settlement? Was it criminal or civil? What is the difference between these terms?
3. Additionally, what type of reporting must Marriott undertake?
4. Can Marriott write off the $600,000 on their taxes as an operating expense? Discuss.

Source:
FCC News (2014). MARRIOTT TO PAY $600,000 TO RESOLVE WIFI-BLOCKING INVESTIGATION. Oct. 3 (Retrievable online at https://apps.fcc.gov/edocs_public/attachmatch/DOC-329743A1.pdf)
Jeff Havens News video. (2014). Marriott Fined $600K for Blocking Guest WiFi, Oct. 14 (Retrievable online at https://www.youtube.com/watch?v=jZ6-miGUgGE)