Verizon to refund more than $90 million.
Verizon wireless announced Monday that it will refund more than $90 million to more than fifteen million subscribers in their October and November bills. Citing “errors” in charges for “data sessions” and “wireless connections,” Verizon said customers may expect between $2 and $6 credit; customer no longer using Verizon’s service will receive checks in the mail. The refund represents one of the largest “voluntary” payouts in American corporate history.
Delivering its announcement, Verizon promoted the illusion it played the role of corporate giant honouring its social and ethical responsibilities. In fact, however, the company acted just half a step ahead of Federal Communications Commission investigators responding to thousands of complaints from customers who did not have data access plans but were charged for data services anyway. FCC sources say Verizon still is subject to penalties for failing to notify customers of the problem that has plagued the system at least since 2007.
In a statement to reporters, FCC Enforcement Bureau chief Michele Ellison said federal officials are “gratified to see the repayment, but for millions of Americans it’s a day late and a $1.99 short.” Pointing to the software problem built into Verizon handheld units, Ms. Ellison emphasized, “Getting consumers repaid is just the first step; ensuring this doesn’t happen again comes next.”
Patterson-Forbes consumer fraud investigator Aeryn MacNeil comments, “We feel willing to let the incident pass as a high-tech abacus error, but we also regard it as a cautionary tale for wireless consumers on all the networks.” Stressing the maximum refund will total only$6 per customer, MacNeil points to the power of the multipliers. “It works a lot like mosquito bites. One bite is an annoyance; a thousand bites will kill you. Using vague terms like ‘data session’ and ‘wireless link’, cell networks easily can pad their bottom lines with phantom charges, and the average consumer probably will not notice.” MacNeil inquires rhetorically, “Do you know anyone who carefully pores over every line on her cell phone bill?”
