At some point the cost-benefit calculus has to flip. Users on the extreme right-tail of the months-paid-but-unused distribution are a negligible amount of reven

At some point the cost-benefit calculus has to flip. Users on the extreme right-tail of the months-paid-but-unused distribution are a negligible amount of revenue but very likely to complain when they noticed they’ve paid for years of unused service. If the company refunds these users as a matter of policy, it creates uncertainty in the accounting and negates the value of them being allowed to keep paying. If no such policy exists, it creates a reputation risk: “YoungPersonApp bilks $2000 from grandma with Alzheimer’s” “Doing the right thing” and “managing reputation risk” are often indistinguishable. The details of Machiavellian self-interest can be difficult to codify, so a semi-sincere effort to do the right thing can be safer.