Verizon loses class action ETF appeal, will pay $21 million settlement

By on July 2, 2010 at 12:59 PM.

Verizon loses class action ETF appeal, will pay $21 million settlement

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A California appeals court has ruled that Verizon Wireless is to pay some 175,000 customers current and former customers $21 million as a settlement in a class action lawsuit over early termination fees. The class action suit was filed in California on the behalf of customers who were upset that Verizon asked they pay a flat ETF of $175 regardless of how many months were left on their contract. Each customer is expected to receive $87.50 as a result of the ruling. Too bad history is bound to repeat itself now that Verizon’s ETF for “advanced devices” (i.e. smartphones) is set at $350. More →

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FCC unsatisfied and troubled by Verizon Wireless' response regarding its ETF and $1.99 phantom data fee

By on December 25, 2009 at 9:31 AM.

FCC unsatisfied and troubled by Verizon Wireless' response regarding its ETF and $1.99 phantom data fee

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In a scathing one page response, FCC Commissioner Mignon Clyburn cut Verizon Wireless to its knees by saying the answers the wireless carrier provided in response to the FCC’s investigation were “unsatisfying and, in some cases, troubling.” The commissioner chided Verizon for the fluctuating rationale behind its early termination fee, which has been expanded to include not only the cost of the device itself but operating and retail costs as well. She pointed out that high voice and data costs already subsidize these business costs and the fees levied, especially those at the end of a contract, are not in the public’s best interest. Clyburn further condemned Verizon by stating that she was “alarmed” by these $1.99 phantom data fees and that Verizon can not just bury its head in the sand and ignore this issue by saying it does not exist. The letter concludes with a stern reprimand reminding Verizon Wireless that they should be “focusing primarily on developing innovative products, maintaining affordable prices, and providing excellent customer service”. Hear that Big Red? Clyburn also promises to discuss this issue in greater depth with her colleagues next year. That water in which Verizon Wireless is standing just got a little bit hotter. More →

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