The payment — not technically a fine — is the largest ever agreed to by a company to end an FCC investigation. The FCC begin investigating Verizon Wireless, the nation’s largest wireless carrier, in January after consumers complained about unexplained data charges — so-called ‘mystery fees’. Verizon Wireless was charging $1.99 per megabyte to its customers without data plans but who had phones that could go online.

“Today’s settlement requires Verizon Wireless to make meaningful business reforms, prevent future overcharges, and provide consumers clear, easy-to-understand information about their choices,” said Michele Ellison, Chief of the FCC’s Enforcement Bureau.

The FCC found that 15 million “pay-as-you-go” customers were likely overcharged since November 2007. The data charges often came after games built into phone accessed the internet and when customers visited supposedly charge-free URLs such as Verizon Wireless’s mobile web homepage.

The FCC is also investigating other wireless carriers for similar practices and recently proposed rules called “Bill Shock” that would require clearer mobile phone bills free of surprise fees.

Verizon announced earlier this month that it would refund more than $50 million in data fees to many of its customers, and the FCC said today in a call with reporters that the settlement provides a way for Verizon customers not covered by that announcement to apply for refunds.

The settlement also requires Verizon to offer customers the ability to set data blocks on their phone to prevent the phone from accessing the net.

Photo Credit: Associated Press/Don Ryan

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Authors: Ryan Singel

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