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December 13, 2019 02:10 am

Lawsuit Forces CenturyLink To Stop Charging 'Internet Cost Recovery Fee'

CenturyLink has agreed to pay a $6.1 million penalty after Washington state regulators found that the company failed to disclose fees that raised actual prices well above the advertised rates. CenturyLink must also stop charging a so-called "Internet Cost Recovery Fee" in the state, although customers may end up paying the fee until their contracts expire unless they take action to switch plans. Ars Technica reports: "CenturyLink deceived consumers by telling them they would pay one price and then charging them more," Washington Attorney General Bob Ferguson said in an announcement yesterday. "Companies must clearly disclose all added fees and charges to Washingtonians." Ferguson encouraged Washington residents "who believe they have received bills that include undisclosed fees to file a complaint" with the state. Ferguson's office said it began investigating CenturyLink in 2016 "after receiving complaints from consumers that their actual bills were more than the advertised price, or the price that they were promised by sales representatives." Here's what Ferguson's office found: "There were three main fees CenturyLink did not disclose: a broadcast fee of $2.49 per month, a sports fee of $2.49 per month, and CenturyLink's 'Internet Cost Recovery Fee,' ranging from $0.99 to $1.99 per month. CenturyLink charged its Internet Cost Recovery Fee to 650,000 Washingtonians. Of those, another 60,000 were also charged the broadcast and sports fees. These fees alone added up to $7 per month to a television subscriber's bill -- $84 per year. The investigation found that CenturyLink did not adequately disclose additional taxes and fees for its cable, Internet and telephone services." CenturyLink admitted no wrongdoing but agreed to a financial settlement and changes in business practices as part of a consent decree filed in King County Superior Court on Monday. The attorney general's office detailed its allegations in a lawsuit filed the same day.

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