TALLAHASSEE, Fla. — Florida Verizon Wireless and Alltel customers will be receiving millions of dollars in refunds for third-party charges to their cell phone bills, Attorney General Bill McCollum said recently.
Verizon Wireless LLC has also agreed to adopt a series of "best practices" standards which will protect consumers from third-party charges, including charges of "free" ringtones and other cell phone content customers either didn't order or didn't realize would result in a monthly charge.
The total amount of the credits that will be issued was not immediately available. Consumers who have other cell phone providers, but also paid for the Verizon Wireless services, will receive a check, said Ryan Wiggins, spokeswoman for the Attorney General's Office.
Under the terms of the settlement, customers will receive a notice in their bills — with those who pay electronically being notified by e-mail — that they are eligible to receive a refund. Customers will be told how to notify the company that they did not authorize the third-party mobile content subscription for which they seek a refund.
Cell phone content includes ringtones, music wallpaper, horoscopes and other material that is often promoted as free, but ultimately ends up costing $19.99 a month. The charges appear on a subscriber's monthly wireless bill, and are usually recurring. The bill charges are often listed under names such as "OpenMarket," "M-Qube," and "M-Box."
A large number of complaints related to the mobile content industry led to an investigation which found that thousands of Florida consumers were billed for such charges.
Verizon Wireless has agreed to prohibit the use of the word "free" in its online advertising without clear disclosure of the actual price. Alltel will also be required to adopt the same practices as part of Verizon's acquisition of Alltel.
Also part of the settlement, Verizon Wireless will pay a total of $1 million and Alltel will pay $500,000 to reimburse the state for the investigation's cost and to help the Attorney General's Office fund the efforts of a task force created to press for similar reform across the industry.
Verizon Wireless is the second wireless provider in Florida to set up the new standards and offer consumer refunds. In February 2008, AT&T Mobility reached a similar agreement.
Susan Salisbury writes for The Palm Beach Post. E-mail: susan(underscore)salisbury(at)pbpost.com.