CenturyLink will pay $4 million to settle claims it overcharged Oregon customers
Published 12:15 pm Wednesday, January 1, 2020
- The Department of Justice said it has fielded more than 1,200 complaints about CenturyLink since 2014.
Oregon’s largest phone company will pay $4 million to settle claims that its marketing and billing practices deceived customers by misrepresenting what its phone and internet services actually cost.
CenturyLink’s agreement with the Oregon Department of Justice includes a promise to refund $672,000 to more than 8,000 Oregon customers who were allegedly charged too much.
In a statement, the Louisiana company said it disagrees with the department’s conclusions but believes “it is in the best interests of our company and our customers to amicably resolve these matters.”
CenturyLink acquired Qwest Communications International in 2011 and inherited Qwest’s local phone business in Portland and many other parts of Oregon. With its landline phone business in sharp decline, CenturyLink has sought to expand by emphasizing internet and TV services — promoting those heavily to compete with Comcast and other big internet providers.
Oregon customers’ complaints about CenturyLink spiked in 2015 and again in 2017 as the company aggressively marketed new internet and TV services. Customer said their bills were often considerably higher than they’d be promised by salespeople who came to their door.
The state Department of Justice said it has fielded more than 1,200 complaints about CenturyLink since 2014.
The department said it opened its investigation in February 2014 in response to complaints that the company misrepresented its prices and billed subscribers for services they didn’t receive.
In the settlement filed Tuesday afternoon, CenturyLink agreed to stop charging new customers an “internet cost recovery fee” that state investigators said the company hadn’t disclosed to new customers.
It will also stop charging a “broadband cost recovery fee.”
Customers on plans that charge those fees will be given an opportunity to switch to other plans without those fees. And CenturyLink agreed to disclose such fees in future advertising.
Additionally, CenturyLink will stop charging cancellation fees and fees for unreturned equipment unless it discloses those fees up front.
Oregon investigators said CenturyLink will notify customers who are eligible for refunds. The department asked customers who believe their bills have undisclosed fees to file a complaint online or call its consumer hotline, 877-877-9392.
The Justice Department said it continues to lead a separate, securities lawsuit over the same issues.