Press Release
Free Press Pleased by Verizon Refunds for ‘Mystery Fees,’ But Pro-Consumer Rules Still Needed
Contact: Timothy Karr, 201-533-8838
WASHINGTON —The Federal Communications Commission has announced a consent decree with Verizon Wireless over secretive data charges levied by the company over multiple years on millions of consumers. Under the terms of the decree, the company will pay $25 million to the U.S. Treasury and will repay a minimum of $52.8 million to approximately 15 million customers.
Although neither the FCC nor any independent party has released data on the actual amount customers paid Verizon for these charges, the amount of the repayments aligns with initial estimates from the company of the total amount it collected in improper fees.
Free Press Policy Counsel M. Chris Riley made the following statement:
"Today’s consent decree promises several positive outcomes for consumers, including immediate refunds to many and commitments to better practices by Verizon. The outcome of this investigation will benefit consumers, and it shows that the FCC was right to investigate these practices. But resolution of this action does not correct the fundamental problems that plague the wireless industry. Only in Washington can a company secretly fleece its own customers for years, get caught, initially deny the behavior, and then settle for a modest sum.
"These phantom fees should never have been levied in the first place – and they could have been prevented by pro-consumer rules protecting against bill shock and ensuring transparency in billing practices. Importantly, Verizon would not have been willing to settle were the Commission not poised to pass rules against such practices. Threats of regulation have a very short shelf life if not consummated. If the FCC does not move forward on its pending proceedings on bill shock and truth-in-billing to establish common-sense rules of the road to protect consumers and prevent deception, the abuses of the past will recur, and consumers will be no better off in the long run."
Although neither the FCC nor any independent party has released data on the actual amount customers paid Verizon for these charges, the amount of the repayments aligns with initial estimates from the company of the total amount it collected in improper fees.
Free Press Policy Counsel M. Chris Riley made the following statement:
"Today’s consent decree promises several positive outcomes for consumers, including immediate refunds to many and commitments to better practices by Verizon. The outcome of this investigation will benefit consumers, and it shows that the FCC was right to investigate these practices. But resolution of this action does not correct the fundamental problems that plague the wireless industry. Only in Washington can a company secretly fleece its own customers for years, get caught, initially deny the behavior, and then settle for a modest sum.
"These phantom fees should never have been levied in the first place – and they could have been prevented by pro-consumer rules protecting against bill shock and ensuring transparency in billing practices. Importantly, Verizon would not have been willing to settle were the Commission not poised to pass rules against such practices. Threats of regulation have a very short shelf life if not consummated. If the FCC does not move forward on its pending proceedings on bill shock and truth-in-billing to establish common-sense rules of the road to protect consumers and prevent deception, the abuses of the past will recur, and consumers will be no better off in the long run."
