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The Courts The Almighty Buck The Internet Technology

Lawsuit Forces CenturyLink To Stop Charging 'Internet Cost Recovery Fee' (arstechnica.com) 43

CenturyLink has agreed to pay a $6.1 million penalty after Washington state regulators found that the company failed to disclose fees that raised actual prices well above the advertised rates. CenturyLink must also stop charging a so-called "Internet Cost Recovery Fee" in the state, although customers may end up paying the fee until their contracts expire unless they take action to switch plans. Ars Technica reports: "CenturyLink deceived consumers by telling them they would pay one price and then charging them more," Washington Attorney General Bob Ferguson said in an announcement yesterday. "Companies must clearly disclose all added fees and charges to Washingtonians." Ferguson encouraged Washington residents "who believe they have received bills that include undisclosed fees to file a complaint" with the state. Ferguson's office said it began investigating CenturyLink in 2016 "after receiving complaints from consumers that their actual bills were more than the advertised price, or the price that they were promised by sales representatives."

Here's what Ferguson's office found: "There were three main fees CenturyLink did not disclose: a broadcast fee of $2.49 per month, a sports fee of $2.49 per month, and CenturyLink's 'Internet Cost Recovery Fee,' ranging from $0.99 to $1.99 per month. CenturyLink charged its Internet Cost Recovery Fee to 650,000 Washingtonians. Of those, another 60,000 were also charged the broadcast and sports fees. These fees alone added up to $7 per month to a television subscriber's bill -- $84 per year. The investigation found that CenturyLink did not adequately disclose additional taxes and fees for its cable, Internet and telephone services." CenturyLink admitted no wrongdoing but agreed to a financial settlement and changes in business practices as part of a consent decree filed in King County Superior Court on Monday. The attorney general's office detailed its allegations in a lawsuit filed the same day.

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Lawsuit Forces CenturyLink To Stop Charging 'Internet Cost Recovery Fee'

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  • by Vanyle ( 5553318 ) on Thursday December 12, 2019 @11:03PM (#59514838)
    I have changed my internet service provider before for a cheaper rate (to these guys) only to find they added a gigantic charge that actually put them ahead of Comcast. Thankfully they lied about being able to service my house (they tried to get me to pay $5k to run fiber) and I was able to get out of it.
    • Maybe they just like some people more than others. Installation was free, they gave me a router to keep at no cost, and my monthly bill comes to the exact $65 they advertised. They even provide roughly the speed they advertised. (750-950)
  • "no wrongdoing" (Score:4, Informative)

    by gl4ss ( 559668 ) on Thursday December 12, 2019 @11:13PM (#59514860) Homepage Journal

    the usa legal system really is due for an overhaul on all levels and applications.

    such deals should go out the window, they were guilty and they admitted to it and should have been given a fine and damages - not something to just bargain with them for huge lawyer costs on both sides.

  • by zamboni1138 ( 308944 ) on Thursday December 12, 2019 @11:15PM (#59514866)

    CenturyLink (which purchased Qwest, formerly USWest) is like any other Telco.

    They have at least a duopoly, and at worst a monopoly, in some ILEC regions.

    They have almost free reign in their regions. The competition in some regions is Frontier (sold off from Verizon, formerly GTE).

    Frontier has a $4.99/month "You don't have voice with us fee". $600 over the last 10 years in fees because I don't have a voice line with them? And no recourse.

    • Could...vote?
      • Sure, and be outvoted by the 90% of people who don’t care.

        The cognitive class is only about 30% of the country, and well, do the math. They are out-voted on all matters.

        Democracy is idiot-rule (okay, average-rule), and its ease of manipulation is why it’s a favorite of most large corporations. The relatively few “thinkers” in a society will always be out-voted by those who vote based on the number of yard signs they see ... or simple party loyalty.

        Hell, even the smart folks can

    • Frontier has a $4.99/month "You don't have voice with us fee". $600 over the last 10 years in fees because I don't have a voice line with them? And no recourse.

      I despise Frontier, but this fee actually makes sense. When you get DSL, you're still using a phone line, even if you aren't using it for voice phone service (the DSL signal is carried at frequencies higher than that used for voice service). If their prices assume concurrent DSL and voice phone service, then the only way to equalize DSL-only is to

    • They also acquired Level(3) which makes them an enormous interconnect.

  • by olsmeister ( 1488789 ) on Thursday December 12, 2019 @11:29PM (#59514902)
    Not really much of a penalty. If the idea is to discourage them and others from this practice, the penalty should have been at least 10 times this amount.
  • The way CenturyLink retains customers is by ignoring any service change request. If you contact them about a change you want, even a request to just completely disconnect service, the CSR will go along with it and then the company simply does nothing.

    I am still probably technically still a customer even though it's over 3 years later since I just gave up and unplugged their copper from my house.

    Just last week another collection agency tried to get $180 from me that CLink pretends I owe them. If I had to co

  • by qwerty shrdlu ( 799408 ) on Friday December 13, 2019 @12:10AM (#59514984)
    All accounts will now be subject to an $8 consent decree cost recovery fee.
    • by sconeu ( 64226 )

      Unfortunately, true. Had they not thought of that before,they now know about.

    • by geek ( 5680 )

      They already sent me 30$, I was pretty surprised to be honest. I haven't had service with them for years either.

  • by darkain ( 749283 ) on Friday December 13, 2019 @12:57AM (#59515044) Homepage

    While you're at it, can you look at the tax collection on the bill? They list tax amounts as well as percentages, without disclosing what the percentage is sourced from. There is NO other values on the bill that match up. On top of that, they list like a 5% here and a 2% there, but is obvious they couldn't have come from the same base source number. The percentages as far as I can tell and the figures they're pulling from are all fucking bullshit.

    Also, on the particular bill I was auditing, it was a $25 phone plan, with a bill nearing $50. So yeah, fuck them and their "fees"

  • by ShoulderOfOrion ( 646118 ) on Friday December 13, 2019 @04:16AM (#59515246)

    $1. Keeping SuddenLink away from my CC and bank account numbers...priceless.

  • Nobody adds fees, doubles various "taxes" from month to month like Comcast. Sign up for a "fixed price" plan with Comcast and guaranteed your bill will grow almost every month. Of course, if you ever call to ask what all those fees and taxes are and why they keep going up, nobody can answer.

    • by Hadlock ( 143607 )

      I went back and forth with T-Mobile on this, finally they agreed I could ask, in writing, from their legal department, what the "fees" were.

      • There was a tax on my Comcast bill which went from $0.25 to $0.50 then to $1.00 in a span of 6 months. When I talked with customer service, the line I got was "we don't know, call the government" but they couldn't even tell me exactly which government I should be calling or which actual tax it was (they called it "franchise tax" IIRC). One customer agent even hung up on me, and another asked why I'm wasting their time for less than a dollar. I never bothered engaging legal, just installed an HD antenna and

  • by VeryFluffyBunny ( 5037285 ) on Friday December 13, 2019 @07:42AM (#59515440)

    ...is highly profitable:

    • Fine = $6,100,000
    • 60,000 * $84 = $5,040,000
    • 590,000 * $1.49 (assuming average) * 12 months = $10,549,200
    • Total = $15,589,200 per year

    Is there any regulatory or financial reason for corporations to stop doing things like this?

    • by pr0t0 ( 216378 )

      Came to say the same. There is no such thing as a criminal activity in the United States, but there are activities that will land you in prison if you do them without wearing a suit.

      • Just make sure you give up your customers privacy and call records, you will always have a get-out-of-jail-free card. Works for Telecoms, works for Facefuck, works for Google.

      • Yep, this.

        If you steal a pack of gum, it’s a criminal offense. You can be locked in a cage for this, and you will have a record which may preclude you from employment going forward.

        If a company steals the equivalent of a pack of gum from 1,000,000 people, it’s civil. No one is at risk of being arrested, and never will anyone’s freedom be in jeopardy.

        Civil for me, Criminal for thee.

    • by ChoGGi ( 522069 )

      A corporation that cannot profit off their ill-gotten gains is un-American.

    • These fines were written into law ages ago before billion dollar corporations existed. The laws need updating.

    • I think you misunderstand. That's not a deterrent, that's a cut of the profit.

    • by PPH ( 736903 )

      Is there any regulatory or financial reason

      If something actually gets settled in court there's a fine plus a cease and desist order. Pay the fine but keep doing the activity and it's contempt of court. Company officers can then spend some time behind bars.

      as part of a consent decree

      That's the way things usually go. No court order and the company can go right back to doing what they want. The atty general can't send people to prison, so they just start over from the beginning again. Ferguson is too busy counting bullets in magazines to actually do any state business. So don't

      • > Company officers can then spend some time behind bars.

        This is true in the sense that flaming monkeys *can* start flying out of my ass.

        I mean, find the smallest monkey species, build little monkey gliders for them, douse them in lighter fluid, put one of those fashionable earhole-enlargers in my anus for a few months ... it is somewhere in the neighborhood of theoretically possible, and it is more likely to happen than a corporate exec going to jail for stealing from customers via unadvertised fees ...

  • interface Ethernet0/0 ip address 10.1.1.1 255.255.255.0 ip access-group 1 in access-list 1 permit 10.1.1.0 0.0.0.255
  • So is the state going to refund the taxes they collected on that $7 per month?

One way to make your old car run better is to look up the price of a new model.

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