The Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) announced that it has entered into a settlement with Lumen Technologies Service Group LLC and CenturyLink Communications LLC (collectively CenturyLink) to resolve allegations that CenturyLink misrepresented the monthly price of its internet services to consumers who were offered a fixed price throughout the subscription term.
Under the settlement, CenturyLink did not admit that it violated any laws but agreed to pay $450,000 in civil forfeitures, surcharges, fees and investigative costs.
Between April 1, 2015 and Dec. 31, 2017, CenturyLink reportedly advertised “price lock” subscriptions to Wisconsin consumers but failed to honor this promotion. The promotion was represented as “locking in” a fixed monthly cost for internet services during the subscription term.
However, during the ensuing subscription term, CenturyLink allegedly applied additional monthly fees to the bills of consumers. These were identified as broadband cost recovery fees and effectively increased the monthly subscription cost. The broadband cost recovery fees were also gradually increased over time.
DATCP alleged that CenturyLink committed 240 violations of a Wisconsin law that prohibits any person who sells or offers to sell internet access services to consumers from misrepresenting the terms of a subscription.
CenturyLink will pay a civil forfeiture of $270,000 for those alleged violations as well as $180,000 in statutory surcharges, fees and investigative costs.
Additionally, CenturyLink has agreed to not engage in practices that misrepresent the terms of a subscription in any advertisement, bill or other communication directed to a Wisconsin consumer; to follow Wisconsin laws and regulations concerning required disclosures for subscription terms and changes; and to end its practice of charging internet cost recovery fees or broadband cost recovery fees to Wisconsin consumers.
