PHOENIX – CenturyLink will pay nearly $11 million as part of an Arizona Consent Judgment involving allegations that the company engaged in deceptive and unfair advertising and billing practices. The company allegedly failed to disclose fees and ultimately charged Arizona consumers more than the prices it promised in advertisements and sales pitches.
CenturyLink will refund $1.9 million directly to Arizona consumers who did not receive a promised “Closer Discount.” CenturyLink is forced to “invest an additional $2 million in improvements to fiber-optic infrastructure in areas that the Attorney General’s Office (AGO) determines are in need,” and the State will receive $7 million.
According to the AGO:
CenturyLink sells local and long distance telephone services, internet services, and TV services to Arizona consumers. CenturyLink offered consumers various “Closer Discounts” as an incentive to sign up for service, but frequently failed to apply discounts to consumers’ accounts.
Between 2013 and 2016, CenturyLink promised Arizona consumers approximately $1.9 million in “Closer Discounts” that consumers never received. Pursuant to the Consent Judgment, CenturyLink is required to provide consumer restitution and refund the entire amount to Arizona consumers.
The AGO alleges that CenturyLink failed to disclose and omitted material facts regarding certain fees it added to consumers’ bills, including the Internet Cost Recovery Fee. The Internet Cost Recovery Fee is a discretionary, CenturyLink-imposed fee that was not adequately disclosed to consumers and effectively increased the monthly fee for consumers enrolled in CenturyLink’s Price-Lock promotion.
The AGO also alleges that CenturyLink engaged in additional deceptive and unfair advertising and billing practices, including but not limited to: (1) failing to disclose or omitting terms and conditions applicable to consumer orders, such as Early Termination Fees, (2) improperly billing consumers for returned equipment, and (3) charging consumers after they cancelled services.
“This settlement holds CenturyLink accountable to customers and will provide significant technological infrastructure investment for the state,” said Attorney General Mark Brnovich in a press release.
In addition to the payments and infrastructure investment, CenturyLink is required to: