Press Release
Verizon Wireless Dodges FCC Inquiry on Harmful Penalty Fees
Contact: Timothy Karr, 201-533-8838
WASHINGTON -- In a letter sent Friday from Verizon Wireless to the Federal Communications Commission, the company admits it is imposing unfair penalty fees to deter consumers from switching carriers.
The Verizon Wireless letter fails to adequately respond to an FCC inquiry earlier this month about the company's exorbitant early termination fees for mobile phones that recently doubled from $175 to $350 and other factors that harm to consumers. The company dodged the Commission’s request for specific data and provided only empty rhetoric.
Chris Riley, policy counsel at Free Press, made the following statement:
"Verizon is blowing smoke at the FCC’s attempts to protect consumers from their unfair billing practices. This letter indicates that Verizon is more concerned with protecting its bottom line than protecting unsuspecting customers from outrageous penalty fees that just can’t be justified. Verizon claims that it must keep up these harmful practices to maintain its operating costs, but it is hard to imagine that this highway robbery is necessary when you look at the company’s sky-high profit margins. The bottom line is that FCC needs to spur some real competition, which will lead to lower device prices and more choices for consumers who don't wish to be bogged down in long-term contracts."
Read the FCC’s letter to Verizon here: http://fjallfoss.fcc.gov/ecfs/document/view?id=7020351209
Read Verizon’s letter to the FCC here: http://fjallfoss.fcc.gov/ecfs/document/view?id=7020353621
The Verizon Wireless letter fails to adequately respond to an FCC inquiry earlier this month about the company's exorbitant early termination fees for mobile phones that recently doubled from $175 to $350 and other factors that harm to consumers. The company dodged the Commission’s request for specific data and provided only empty rhetoric.
Chris Riley, policy counsel at Free Press, made the following statement:
"Verizon is blowing smoke at the FCC’s attempts to protect consumers from their unfair billing practices. This letter indicates that Verizon is more concerned with protecting its bottom line than protecting unsuspecting customers from outrageous penalty fees that just can’t be justified. Verizon claims that it must keep up these harmful practices to maintain its operating costs, but it is hard to imagine that this highway robbery is necessary when you look at the company’s sky-high profit margins. The bottom line is that FCC needs to spur some real competition, which will lead to lower device prices and more choices for consumers who don't wish to be bogged down in long-term contracts."
Read the FCC’s letter to Verizon here: http://fjallfoss.fcc.gov/ecfs/document/view?id=7020351209
Read Verizon’s letter to the FCC here: http://fjallfoss.fcc.gov/ecfs/document/view?id=7020353621
