Verizon Wireless To Refund Up To $90 Million In Wrongful Data Charges

NEW YORK — Verizon Wireless could pay out up to $90 million in refunds to cell phone customers who were improperly charged for inadvertent Web access or data usage over the past several years.

The FCC had asked Verizon Wireless last year about $1.99-a-megabyte data access fees that appeared on the bills of customers who didn't have data plans but who accidentally initiated data or Web access by pressing a button on their phones.

In a statement on its website Sunday, Verizon Wireless said most of the 15 million customers affected will receive credits of $2 to $6 on their October or November bills. Some will receive larger sums. Customers no longer with the New York-based carrier will get refund checks.

"Verizon Wireless values our customer relationships and we always want to do the right thing for our customers," said Mary Coyne, deputy general counsel for Verizon Wireless. "The majority of the data sessions involved minor data exchanges caused by software built into their phones; others involved accessing the Web, which should not have incurred charges. We have addressed these issues to avoid unintended data charges in the future."

Verizon has said that it stopped charging such fees when a customer started using a data service but then quickly shut it off.

The FCC confirmed Sunday that it has been investigating the charges after complaints from consumers. It said Verizon itself has reportedly put the amount of overcharges at more than $50 million, dating back two years.

"We're gratified to see Verizon agree to finally repay its customers," FCC Enforcement Bureau Chief Michele Ellison said in a statement.

"But questions remain as to why it took Verizon two years to reimburse its customers and why greater disclosure and other corrective actions did not come much, much sooner."

The FCC will continue to look into those issues, including the possibility of additional penalties, Ellison said.

Verizon Wireless, the largest cell phone carrier in the U.S., is a joint venture between Verizon Communications Inc. and Britain's Vodafone Group PLC.

Comments

[Matt Schafer]

11:58 AM on 10/06/2010

The refund comes after a 10-month Federal Communications Commission’s investigation into what it called Verizon’s “mystery fees,” which affected over 15 million subscribers. The investigation follows closely on the heels of a May FCC investigation into “bill shock” or the unexplainable rise in cell phone bills. At the time of the bill shock survey, the CTIA, a lobbying association of wireless providers that includes Verizon Wireless, said the survey was off base. Perhaps the FCC should continue its investigation beyond the bounds of the Verizon corporate office.

Read more: http://bit.ly/a0ByhV

[Max Shaw]

01:02 PM on 10/05/2010

The government is really dropping the ball on corporate dishonesty. No one seems to be cracking the whip at all until years downt the line.

[Wanjiru]

11:40 PM on 10/04/2010

Was thrilled for Verizon customers when I first saw this on the news ($90 mil!) So you can only imagine how hard the $6 per customer reality check hit me.
.

[2million5Q]

06:42 PM on 10/04/2010

TERESA DIXSON MURRAY is our HERO!!! She started the ball rolling on getting bills
corrected.....YOU ROCK MS MURRAY!!!
We've found so called surcharges and anonymous charges on our bills too for months!!!

[history repeats]

02:37 PM on 10/04/2010

wow $6....

[Kardii]

02:24 PM on 10/04/2010

I'm not surprised by this at all. Everyone knows someone who has had some ridiculous charge put on their bill and its definitely no accident. They've discovered that the amount of people that complain about being over charged verse the people who just take it on the chin are far less. All these extra charges rake in billions for whatever company. Same thing goes for activation and disconnection fees, I understand there is a cost to perform a service but come on it seems like they are totally ripping you off and your usually in a situation where you can't argue with them so you just have to take it.

[zaggy]

02:15 PM on 10/04/2010

We need government regulators watching for the people.

[LuckyDay123]

01:49 PM on 10/04/2010

I subscribed to their wireless internet for what I thought was $50 per month. My first bill was nearly $300 for one month. I had gone over the 5 gb allowed per month. Anything over that was $.25 per kb. What I didn't know, and they didn't tell me was that everytime you use the internet everything that streams uses kb's, even those video ads and animations. I immediately canceled the service at a cost of the cancellation fee that they charge. That cancellation fee is what should really be reduced or dropped if you don't like what they are providing.

[rt6913]

01:30 PM on 10/04/2010

It's about time the FCC got after the cell phone companies. They constantly rip off the public and intentionally try to confuse the consumer in order to make extra money. A recent phone upgrade required a $30/month data package that we didn't want but were told it was not optional as the phone we wanted required it and unless we took a VERY basic phone we had to pay the $30/month data charge. We decided to get the phone and pay the $30/month data charge - but here's the kicker. We had blocked data charges on the previous phone and were told that once the new one was activated we had to go in and unblock the data availability in order to use that function - it had NOTHING to do with the phone requiring data service - it was VERIZON demanding to get an extra $30/month out of me.

[KingGeorgetheTurd]

01:08 PM on 10/04/2010

when you deregulate industry, this is what you get. They will attempt to fraud people every chance they get, and if they get caught, they say whoops sorry. If they don't, we the people pay the price.

Yay capitalism!

[2million5Q]

06:43 PM on 10/04/2010

absolutely, deregulation creates corruption....

[Skeptical Patriot]

08:43 AM on 10/06/2010

Yes, and regulation creates stagnation. Let's all go back to the ATT days, black rotary phones that you couldn't even own, 110 baud data services and monopoly pricing. Love that government when it works.

[KingGeorgetheTurd]

04:44 PM on 10/06/2010

LOL, are going to tell me deregulation caused the technology to grow? LOLOLOL

You wanna know what Bell labs gave the most credit to the explosion of technology and comms systems? The Military and NASA, two government run socialist systems.

[bigbumper]

01:08 PM on 10/04/2010

i started with verizion last year right away i was unhappy. they tagged on $30 a month in hidden fees. it took four phone calls and a lot of waiting to talk to someone. i have gotten those charges taken off but they started charging me for hbo/cinemax when we don't get those. now they have started charging me for installation fees i never had. when my plan is up i am switching. verizon are crooks.

[AtoMike]

01:37 PM on 10/04/2010

There is not one service that doesn't get a story like yours. I would give them a chance. We have had Verizon cell service for about six years or so and FIOS service for about three and have been pretty happy with them.

[KisaCat]

12:59 PM on 10/04/2010

After 15 years of being with Verizon I left a few months back due to these data access charges. Every month for over a year I would get these additional charges ranging from 3 dollars up to 20 dollars and ever month I would dispute these charges. They refused to rescind them, saying it was my fault that I clicked onto the web - I clearly did not have this service on my plan but it was too easy to hit the wrong button on my phone that would access the web. I'd immediately click off but even for 3 seconds of being on it Verizon would charge $3.99 per minute. Finally after months of haggling with them I decided enough was enough and I left. Now I'm with Credo Mobile and much, much happier, plus there's the extra bonus of knowing your money is going towards progressive and positive causes.

[Uther4]

12:52 PM on 10/04/2010

verizon sucks wireless that is no signals no where

[Uther4]

12:49 PM on 10/04/2010

VERIZON WIRELESS SUCKS

[squatmunkie]

11:36 AM on 10/04/2010

Verizon has always been good to me. If they had an iphone I wouldn't be switching to at&t right now.