CommLaw Monitor https://www.kelleydrye.com/viewpoints/blogs/commlaw-monitor News and analysis from Kelley Drye’s communications practice group Tue, 11 Jun 2024 21:20:13 -0400 60 hourly 1 Does Enforcement Lurk Behind the New Wireless Industry Customer Billing Alerts? https://www.kelleydrye.com/viewpoints/blogs/commlaw-monitor/does-enforcement-lurk-behind-the-new-wireless-industry-customer-billing-alerts https://www.kelleydrye.com/viewpoints/blogs/commlaw-monitor/does-enforcement-lurk-behind-the-new-wireless-industry-customer-billing-alerts Mon, 17 Oct 2011 13:09:55 -0400 According to FierceWireless and other news sources, the wireless industry announced this morning an agreement with the FCC and consumer groups to provide free text alerts to consumers before they exceed their plan limits on voice minutes, text messages, data usage or international roaming. The press release is available on the CTIA website here. A good summary of the agreement is available here.

Not surprisingly, the FCC Commissioners have praised the industry for these new "voluntary" measures. Statements from Chairman Genachowski, and Commissioners Copps and Clyburn have already been released.

This agreement likely will allow the FCC to close its "bill shock" rulemaking proceeding without adopting formal rules. The new Guidelines will have to be reviewed carefully, however, particularly since Commissioner Clyburn's statement asserts that the guidelines contain a mechanism to assist the FCC's enforcement of them. That sounds more like a mandate than voluntary guidelines.

]]> FCC Completes "Mystery Fees" Investigation of Verizon Wireless Data Charges https://www.kelleydrye.com/viewpoints/blogs/commlaw-monitor/fcc-completes-mystery-fees-investigation-of-verizon-wireless-data-charges https://www.kelleydrye.com/viewpoints/blogs/commlaw-monitor/fcc-completes-mystery-fees-investigation-of-verizon-wireless-data-charges Thu, 28 Oct 2010 13:47:45 -0400 This order stands in stark contrast to the nominal CPNI settlements, odd refund provisions and low-ball forfeiture penalties we've discussed in this blog. Today, the FCC announced an eye-popping $25 million settlement with Verizon Wireless in its investigation of Verizon's unauthorized billing of wireless data charges. The so-called "mystery fees" investigation stemmed from allegations that Verizon Wireless was charging customers $1.99 per megabyte usage charges for data sessions that consumers did not initiate or were not aware of. According to the FCC, many of the charges were caused by mobile applications accessing the Internet, third party-initiated data transfers and failures of Verizon's Internet access and billing. The FCC boasts that this is its largest-ever settlement and consumer refund action.

A few weeks ago, Verizon announced $50 million in customer credits related to the "mystery fee" charges. At the time, the FCC confirmed it was investigating, but it withheld its powder about its own enforcement action. Today, the FCC announced a settlement and the $25 million "voluntary payment" by Verizon Wireless. Click here for the press release and text of the consent decree.

The FCC highlighted the following provisions in its press release:

  • $25 million voluntary contribution to the federal treasury;
  • minimum $52 million in consumer refunds;
  • cessation of billing for "unauthorized charges";
  • revised consumer disclosures and a "data block" service option.

In addition, the consent decree contains training and compliance monitoring provisions over two years.

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