Verizon Wireless making refunds to millions

Verizon Wireless will pay millions of dollars in refunds to 15 million cell phone customers who were erroneously charged for data sessions or Internet use, the company announced yesterday.

Verizon did not disclose how much it would have to pay but said 15 million customers would receive credits or refund checks that in most cases would range from $2 to $6 - but would be higher in some cases - on their October or November bills.

Former customers will get refund checks while existing customers will get credits.

Operators such as Verizon Wireless have been heavily promoting ever-more advanced phones in the hope of convincing consumers to go beyond making voice calls and to also spend money on data services such as Web browsing and downloading applications such as games.

The New York Times, which first reported the settlement, cited unnamed people familiar with the settlement plan saying that the Federal Communications Commission is pressing Verizon to agree to a penalty for the unauthorized charges.

The charges affected customers who did not have data usage plans, but were billed because of exchanges initiated by software built into their phones.

For example, trying out a demonstration of a game that Verizon Wireless had pre-loaded onto a phone would sometimes trigger data transmissions from the phone, without customers knowing.

They were then charged by Verizon Wireless for the data.

- Reuters