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Verizon & FCC Reach $25M Settlement in Landmark Case Over "Mystery Charges"

submitted on October 30, 2010 by HouTex in "Stores / Merchants"
Remember last year there was a topic posted on Buxr about Verizon's configuration of phones that resulted in customers accidentally incurring extra data fees?

Well, Verizon and the FCC have reached a $25 million settlement in the "Mystery Charge" case. The company must also reimburse subscribers a total of $52.8 million for those "accidental" charges. Mr Green

Verizon Wireless has agreed to a landmark settlement with the Federal Communications Commission to resolve allegations that it bilked customers out of millions of dollars in accidental data charges over the past three years.

Verizon also agreed to refund $52.8 million to subscribers for the erroneous charges, which came in the form of data-usage fees billed to consumers who don't subscribe to monthly plans. Verizon's "pay-as-you-go" customers are billed at $1.99 per megabyte of mobile data usage, but some 15 million current and former subscribers received charges triggered by software preloaded on their phones or other inadvertent data sessions.

FCC officials also indicated that they are looking into dubious charges from other companies, including the recent probe into surprise charges that the commission has termed "bill shock."

The company said that it is modifying the software that triggered the bulk of the charges to correct the error, and adjusting the settings for certain websites that should be free to access for subscribers without data packages.



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