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Mystery solved: Consumers win in Verizon Wireless "mystery fees" settlement

November 4th, 2010 by Michele Ellison - Chief of Enforcement Bureau

Late last week, the Enforcement Bureau resolved a ten-month investigation into allegations that Verizon Wireless incorrectly billed 15 million customers for unauthorized data charges.  The settlement -- the largest enforcement action in FCC history -- ensures that affected customers will get at least $52.8 million of their money back and requires Verizon Wireless to make a record $25 million payment to the U.S. Treasury.  It also obligates Verizon Wireless to cease billing for unauthorized data charges, give consumers more (and clearer) information about data plans and options, and provide robust training to its customer service employees -- so that consumers who have questions can get straight answers and prompt action.

Notably, Verizon Wireless customers themselves played a key role in bringing the “mystery fees” to light.  The settlement is a great example of what can happen when consumers speak up, and we’re proud to have played our part in making sure that the voices of many millions of individual consumers were heard. 

So, in addition to the money, what else do Verizon Wireless customers get out of the settlement? 

•    Improved customer service
•    Data blocks on request, if they want to avoid or limit data charges
•    Right to request a refund for unauthorized data charges, if they do not receive one
•    Close monitoring of data charges by a new Verizon Wireless Data Charge Task Force
•    Strong accountability and compliance monitoring by the FCC

This is just the latest in the Enforcement Bureau’s continuing effort on the consumer protection front.  We will monitor the company’s compliance going forward, and remain committed to standing with and for consumers.  So, consumers, if you need us, our lights are always on.

For more details, take a look at the press release, the Consumer Tip Sheet, or the settlement itself.

7 Responses to “Mystery solved: Consumers win in Verizon Wireless "mystery fees" settlement”

  1. Guest says:

    I used to get these small data charges ($1-2) on my wireless bill regularly from Verizon that I knew I was something I did not personally incur. Several times I called them but it was always a hassle and a waste of my time to have them reversed and the amounts were small. But I knew that the total income for Verizon for these charges was probably large and that they would do nothing to change things unless directed by the FCC. The settlement should have been enough and punitive enough to be an incentive to make these carriers respond to customers with a fix such as a block or a small threshold of data that would not have usage fees and not require each customer to call for refunds.

  2. Guest says:

    Have friends and relatives (besides me) who have been screwed royally by Verizon, ATT, T-MOBILE, (T-MOBILE IS PARTICULARLY BAADDDD) among a few. My personal philosophy is that if I'm going to be screwed, I'd like to enjoy it; and there is nothing enjoyable about trying to deal with some of the customer service departments of these carriers. I think one of the job requirements for employment by these companies is that one cannot have more than 3-4 functioning brain cells or must be a certified brain donor. Talk to five different CSRs and get five different responses/solutions (none of which is a viable solution) and not one CSR knows what "Let me speak to a supervisor" means or, as one CSR told me, there are no supervisors!!!! T-Mobile is notorious for this; they won't let you speak to a supervisor regardless of what you say!

  3. Guest says:

    When is the FCC going to go after the biggest mother of them all, ATT?

    Read this 60+ page thread of complaints re ATT "Mysterious Data Usage Charges" of iphone users:
    http://discussions.apple.com/thread.jspa?threadID=2450738

    (And ditto what the person said re CSR's trained to give customers the run around.)

  4. Guest says:

    When we first started noticing the mysterious data charges, we called Verizon. They assured us that we were accessing data, even though we weren't. Called them 2-3 times, each time we rec'd the same answer - the charges would not be dropped. Now we get a rebate check - for $4.54 even though Verizon charged us around $56 for data usage in the past 6 months. The refund checks are a joke and when we printed out our past bills and again called Verizon to complain, they again would do nothing. Verizon is flat-out stealing from consumers. Verizon's inadequate refund checks are just another attempt to cover up their crimes by trying to make it look like they are doing the right thing - but they still owe us $50 and how much do they still owe millions of others?

  5. Guest says:

    In the same boat! Any answers, yet?

  6. Guest says:

    In the same boat as guest 4 & 5.....charged/paid $64.68 and credited only $2.20
    Anyone know if FCC is going to address this issue with Verizon Wireless ?

  7. Guest says:

    When will the FCC Investigate the Apple iPhone Phantom Data Usage that is reported by users in the US? The online FCC complaint tool does little more than fire off an email from AT&T to the customer and a follow up phone call of assuring the customer everything is fine.

    What a joke.

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