MADISON, Wis. (WFRV) – The Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) has reached a settlement with Lumen Technologies Service Group LLC and CenturyLink Communications LLC over allegations the companies misrepresented the monthly cost of internet service to Wisconsin consumers.
While neither company admitted to violating any laws, both agreed to pay $450,000 in civil forfeitures, surcharges and investigative costs.
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Between April 1, 2015, and Dec. 31, 2017, CenturyLink advertised “price-lock” subscriptions that were marketed as fixed monthly rates for internet service. However, according to DATCP, consumers were later charged additional monthly fees labeled as “broadband cost recovery fees,” which increased over time from $1.99 in April 2015 to $3.99 by October 2016.
DATCP alleges CenturyLink committed 240 violations of a Wisconsin law prohibiting misrepresentation of internet subscription terms. The company will pay a $270,000 civil forfeiture for those alleged violations, along with $180,000 in statutory surcharges, fees and investigative costs.
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“Access to the internet has become essential to the daily lives of most consumers, and DATCP is committed to protecting consumers from business practices that unfairly increase their monthly bills for this service,” said DATCP Secretary Randy Romanski.
As part of the settlement, CenturyLink has agreed to:
- Stop misrepresenting the terms of any subscription in advertisements, billing or other communications directed to Wisconsin consumers
- Comply with state laws and regulations related to subscription disclosures and changes
- End the practice of charging Wisconsin consumers broadband or internet cost recovery fees
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This settlement follows a 2020 class-action lawsuit in Minnesota, which made more than $15 million in payments available to customers who purchased certain services from CenturyLink between Jan. 1, 2014, and Jan. 24, 2020.
Beginning in March 2020, CenturyLink sent notices to class members, including more than 315,000 Wisconsin customers who were eligible to file a claim.
