Verizon Wireless has agreed to pay $93.5 Million to the US government. According to an article written by Brad Reed, ITWorldCanada, the original complaint was filed against Verizon in 2007. MCI (starting in 1999) began overcharging the government by “submitting invoices for payment to the United States for certain surcharges … that it is prohibited from charging the United States under Federal Acquisition Regulations … and the FTS 2001 contract.” Since Verizon and MCI merged in 2006, the courts found Verizon liable for MCI’s actions.
Verizon Loses Case to US Government
“Verizon was not only charging the government for the costs associated with communication services, but it also was pumping up its revenues by charging the government for Verizon’s own property taxes and other costs of doing business,” said attorney Colette Matzzie of the law firm Phillips & Cohen LLP, which filed the original complaint against Verizon. “Under federal law, Verizon was responsible for paying those costs, not the government.”
This is the 2nd time in less than a year that Verizon has agreed to pay millions for overcharging. Last fall, Verizon had to pay the Federal Communications Commission $25 million for charging its customers with unexpected “mystery fees.” Apparently Verizon was charging customers fees for data plans when they didn’t have data plans. Verizon had to pay $52.8 million to consumers for overcharging them.
Nearly 1 in 5 US cell phone subscribers had their cell phone bill rise unexpectedly. According to a survey done last year by the FCC, conducted by research firms Abt/SRBI and Princeton Survey Research Associates, 17% of US cell phone users had an unexplained rise in their bills even though they hadn’t changed service plans. The survey didn’t single out any particular cell phone service provider.
Do you watch your cell phone bill closely or just pay it automatically? Apparently Verizon was counting on your inattention. I for one, will be watching very closely now. Verizon is already one of the most expensive carriers out there. Unfortunately for me, Verizon has the best coverage in my area. AT&T and Sprint really fall short in my rural area. But I will be watching the bills for any sudden increase.
Support for CellPlaza.org is provided by batteries4less.com, the leading online retailer of camera replacement batteries, cell phone batteries, chargers, mobile accessories and cordless phone batteries. Buy a HTC Evo Battery online at batteries4less.