Press Release
Free Press Calls on Congress to Protect Wireless Users from ‘Phantom Fees’
Contact: Timothy Karr, 201-533-8838
WASHINGTON – On Wednesday, Free Press delivered letters to key members of the House and Senate, urging them to investigate deceptive billing practices and “phantom fees” in the wireless industry following the discovery that Verizon has been overcharging customers for data services they did not use.
The letters were delivered to Sens. Jay Rockefeller (D-W.Va.) and Kay Bailey Hutchison (R-Texas) as well as Reps. Henry Waxman (D-Calif.) and Joe Barton (R-Texas), the leaders of the key congressional committees that oversee telecommunications.
This week, Verizon Wireless admitted that about 15 million of its customers, over several years, were unfairly charged for data access they did not initiate or that occurred when they mistakenly pressed the wrong button on their phones. The company has said it will reimburse affected customers $2 to $6 for the phantom fees, totaling more than $50 million.
On Monday, Federal Communications Commissioner Mignon Clyburn called on the agency to determine what happened and how it can be prevented. On Tuesday, Sens. John Kerry (D-Mass.), Amy Klobuchar (D-Minn.) and Mark Begich (D-Alaska) also emphasized the need for FCC oversight.
Free Press Political Adviser Joel Kelsey made the following statement:
“Verizon’s announcement raises more questions than it answers, and it provides little to its subscribers who are continually forced to dig deeper into their pockets after being caught in the traps of a deceptive industry. Verizon’s decision to repay up to $50 million almost certainly falls far short of compensating what could well be hundreds of millions of dollars in erroneous fees, if these practices have indeed been occurring for the past several years.
“There is a drastic need for greater reform in the wireless marketplace, and we hope other members will join in the effort to investigate and establish clear rules prohibiting deceptive behavior and requiring transparency in billing. Additionally, consumers need a forum at the FCC to bring complaints. They shouldn’t have to rely on phone calls to customer service and the voluntary goodwill of an increasingly consolidated industry to enforce their rights.”
The letters were delivered to Sens. Jay Rockefeller (D-W.Va.) and Kay Bailey Hutchison (R-Texas) as well as Reps. Henry Waxman (D-Calif.) and Joe Barton (R-Texas), the leaders of the key congressional committees that oversee telecommunications.
This week, Verizon Wireless admitted that about 15 million of its customers, over several years, were unfairly charged for data access they did not initiate or that occurred when they mistakenly pressed the wrong button on their phones. The company has said it will reimburse affected customers $2 to $6 for the phantom fees, totaling more than $50 million.
On Monday, Federal Communications Commissioner Mignon Clyburn called on the agency to determine what happened and how it can be prevented. On Tuesday, Sens. John Kerry (D-Mass.), Amy Klobuchar (D-Minn.) and Mark Begich (D-Alaska) also emphasized the need for FCC oversight.
Free Press Political Adviser Joel Kelsey made the following statement:
“Verizon’s announcement raises more questions than it answers, and it provides little to its subscribers who are continually forced to dig deeper into their pockets after being caught in the traps of a deceptive industry. Verizon’s decision to repay up to $50 million almost certainly falls far short of compensating what could well be hundreds of millions of dollars in erroneous fees, if these practices have indeed been occurring for the past several years.
“There is a drastic need for greater reform in the wireless marketplace, and we hope other members will join in the effort to investigate and establish clear rules prohibiting deceptive behavior and requiring transparency in billing. Additionally, consumers need a forum at the FCC to bring complaints. They shouldn’t have to rely on phone calls to customer service and the voluntary goodwill of an increasingly consolidated industry to enforce their rights.”
