Hi, I'm the OP.
I read through this thread, it's interesting to see so many opinions...
To my understanding, if you actually read your contract, VZW retains the right to charge you the ETF under any circumstance where the contract is ended prematurely (either on your behalf or theirs). The ETF covers a subsidy VZW provides for its customers to reduce the price of handsets, which is made up for VZW throughout the course of your 24 month contract. If your contract is ended prematurely, VZW needs to recover as much of that subsidy as they can or else they take a loss, and they do that by imposing an ETF. Regardless of whether you left VZW to join ATT and get an iPhone or because VZW canceled you for tethering (which is clearly in violation of their Terms of Service if you actually read the Terms of Service), they can charge you the ETF. So to those people who said they can't charge you an ETF if they cancel your contract, you're wrong. They can't make you return the device, but they can charge you an ETF to cover the cost of that device. This is a business, a huge corporation, and they have a bottom line. You can bet they're going to do whatever is within their legal right in order to make their bottom line look the best that it can.
I think one thing people didn't catch (and I didn't explain it very well in the original post) is that it was merely coincidence about my need to tether due to my campus's loss of internet and the meeting my family member had at VZW. Normally when I learn something about VZW corporate policy/internal workings of VZW, I keep it to myself. That kind of information rarely belongs on a public forum, for several reasons which I don't have to list. Yes, the events happened on the same day, but they were completely coincidental.
There's no need to say that my timeline doesn't add up, because no timeline is needed. The topic of tethering did not come up in the meeting because I was tethering. Rather, I simply used tethering that day, and in the same day there happened to be a meeting in the morning where tethering was a topic. I didn't even think about how it was a little weird timing, but that happens sometimes.
Anyway, I wasn't given a line of crap as some of you said. I actually live with the family member of mine who works for VZW, and I have seen many internal documents (commission/bonus structure, employee rules & regulations, etc.) I've even seen entire packets of information that detail the questions managers will ask candidates who are applying for certain retail positions. I've seen the VZW about you page (where employees can view their paychecks, etc.).
I believe that most reps are full of crap sometimes but given that I live with this rep and given that most of the information I share on a public forum like this comes straight from internal VZW company documents, I wasn't told something that is false. Not to mention, we happen (against company policy) to spend time with my family member's store manager outside of work. We've gone out drinking, bowling, and had movie night at our house several times, in addition to going out for dinner and spending time with his manager and the manager's spouse and children. I have heard many things straight from the manager's mouth in regard to company policies, commission, pay scale, contract details, etc.
I won't sit here and let someone say I'm full of crap when I know that if I was told something by a store manager of a Class A retail store (the biggest retail store - there are class A, B, and C stores, depending on the store's size and traffic) that it is true.
Again, most of what I've learned about the internal workings of VZW have been from reading internal documents, pamphlets, worksheets, etc. Yes, in regard to tethering I heard it from a rep (who I live with, as I stated), but I tend to believe most things that he says due to the fact that I usually read about a given fact later on in a piece of paper he brings home from work or prints from his e-mail.
And to the person who said company accounts aren't monitored, you're wrong. Working in a call center (as you said you did), you worked in the retail channel I'm assuming. Did you forget that anyone on a company line (through VZW) when they dial *611 for customer care they're transferred to the employee phone team for that region? For example. I'm on a company account that gets 50% off every feature/service, so my bill's really cheap, which is great. But I can't call customer care like any regular Joe who has Verizon can. Instead, I get forwarded to the employee phone team (the northwest region in specific in my case). The employee phone team is the ONLY set of people who can view and make changes to my account. I can't walk into a retail store to buy a phone on release day because no retail rep in any retail store can pull up my account (it's an employee account). Employees are STRICTLY forbidden from viewing other employee accounts except for the employee phone team.They do, indeed, check employee accounts from time to time, and if I were caught tethering, I'd be given the same treatment as any customer. But in addition to that, the person whose account I'm on who works for VZW (my family member who I live with in this case) would probably get some form of punishment or reprimand at work because of my action(s).
That's all I have. I hope it cleared up a few things for some of you nay-sayers. Bottom line: I believe VZW can track tethering, and if they do see your phone as being rooted, they by all legal authority can notate your account and cancel your contract or at least put in your account notes that your warranty is void.
It's a warning, and I think any smart person will be careful. With the competition with AT&T heating up since the last 4-5 months, nobody should be surprised if VZW is taking steps to optimize its network to avoid the network problems that has caused AT&T much malign.