Tracfone Agrees Will Pay $23.5M for Alleged Lifeline, EBB Violations
Verizon subsidiary Tracfone agreed to pay $23.5 million to settle an investigation into whether it violated FCC rules for the Lifeline and emergency broadband benefit programs, and to put in place compliance measures, the FCC said Wednesday. That amount includes…
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$6 million to resolve a 2020 notice of apparent liability for other apparent Lifeline violations, the agency said. The Enforcement Bureau investigated Tracfone’s procedures “for determining customer usage, which are critical for ensuring public funds are not subsidizing unused connections,” the agency said: “TracFone disclosed that its internal processes resulted in Lifeline claims for customers who had not used the service in the prior 30 days, contrary to the Commission’s rules.” Verizon closed on its buy of the low-cost carrier two years ago (see 2111220069). “Whether attributable to fraud or lax internal controls, or both, we will vigorously pursue allegations of misconduct that harms critical FCC programs designed to help those most in need of communications-related services,” said Enforcement Bureau Chief Loyaan Egal.