Verizon to issue refunds for data usage - $90m expected thanks to FCC

by Steve Ragan - Oct 4 2010, 01:06

If you are one of the 15 million people Verizon Wireless overcharged for data usage, then you might be getting a refund, thanks to pressure placed on VZW by the Federal Communications Commission (FCC). The refund cap is expected to peak at $90 million dollars.

During the months of October and November, Verizon Wireless (VZW) will notify some 15 million customers through regular billing messages that they will receive a credit on their bills due to mistaken data charges. Former customers will get refunds mailed out to them, a statement sent to The Tech Herald explains.

Mary Coyne, Deputy General Counsel, Verizon Wireless said that as VZW reviewed customer accounts over the past several years, they discovered mistakes that led to customers being charged for data sessions on their phones that they did not initiate.

“The majority of the data sessions involved minor data exchanges caused by software built into their phones; others involved accessing the web, which should not have incurred charges. We have addressed these issues to avoid unintended data charges in the future,” Coyne said in the statement.

Most of the refunds will range from $2.00 to $6.00. So assuming that 15 million people get $6.00, the cap is expected to hit $90 million square. However, the exact amounts are unknown, and even the statement said that some customers will receive larger credits.

The interesting twist to this refund is the alleged cause, the FCC. According to the New York Times [link], sources familiar with the situation said that the FCC is pressuring VZW to agree to some form of penalty for the unauthorized data charges. The FCC hopes that such a penalty would serve as a deterrent for other telecoms that discover similar charges, but fail to correct the issue and notify customers in a timely manner.

The New York Times and the Cleveland’s Plain Dealer were the source of a story in 2009, where it was reported that hundreds of complaints from VZW customers were sent to the FCC. The VZW customers claimed that they were charged for data usage when the phone was turned off, or when the Web button was pressed on accident. According to the New York Times' sources, VZW's problems can be tracked back as far as 2007.

The text of the VZW statement is here.

The Plain Dealer stories are here and here.

Let us know if you hear from Verizon, we'd like to see where the refunds stand.

[Note: Headline image via Nomad on Flickr.]

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