Verizon Communications Inc. (VZ) was fined a record $25 million by the Federal Communications Commission and agreed to refund an additional $52.8 million to customers to settle allegations that the largest U.S. mobile-phone company overcharged customers for data fees.

The FCC found that Verizon may have overcharged as many as 15 million wireless subscribers over the past three years for its so-called "pay-as-you-go" data plans, the regulator said in a statement Thursday. The excess fees stemmed from, among other things, unauthorized data transfers from applications and unwanted data transfers to customers whose content filters were supposed to stop such transfers.

The settlement ends a 10-month investigation into Verizon's so-called "mystery fees" -- which included charges of $1.99 per megabyte of downloaded data that was billed to customers who didn't subscribe to that particular plan. Regulators began to probe the company in January because of customer complaints.

"Today's settlement requires Verizon Wireless to make meaningful business reforms, prevent future overcharges, and provide consumers clear, easy-to-understand information about their choices," said Michele Ellison, chief of the FCC's enforcement bureau, in Thursday's statement.

About one in six Verizon customers will receive refunds, predominantly between $2 and $6, Verizon said in a separate statement.

"We are issuing credits and refunds on our own initiative and because it is the right thing to do for our customers," Verizon said. "Fixing this for our customers has been our aim since last year."

Verizon shares were little-changed at $32.41 in New York Stock Exchange trading Thursday. The company said last week that third-quarter earnings fell 25% from a year earlier largely on higher costs related to pension settlements. Revenue fell 2.9% to $26.5 billion.


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Georgia

Advised by Verizon today that they only supply summary of account statement. They no longer provide an itemization of charges, unless you pay $1.99 per month. Now customers will not be able to see overcharges

October 30 2010 at 10:53 AM Report abuse rate up rate down Reply
wehew

"We are issuing credits and refunds because we were caught red handed scamming our customers," Verizon said. "Creating unauthorized charges that are less easily detected will be our will be our primary focus moving forward."

October 29 2010 at 5:48 AM Report abuse rate up rate down Reply
sgentilejr

I have been fighting with Verizon for over 4 years about this same issue. I had Verizon block ALL Data transfers to my cell phone and yet I still continued to get Data charges on my bills. Yet every time I called Verizon customer service and complained the subtracted the Data charges from my bill and gave me a credit. My advice NEVER pay your home or cell phone bill without checking it over carefully. When in doubt call Verivon and say What is this charge for or who's phone number is this on my bill when there is a call charge for any call that you do not remember making.

October 28 2010 at 7:23 PM Report abuse +1 rate up rate down Reply