9
emphasized a “locked” or fixed price for a period of time, 2) did not include
the Internet Cost Recovery Fee in the advertised price, and 3) contained
disclosures that failed to adequately inform consumers that they would be
charged the Internet Cost Recovery Fee, that the surcharge would increase,
and the nature of the surcharge.
37. CenturyLink’s customer service representatives sometimes
failed to disclose the Internet Cost Recovery Fee. In other instances, they
falsely told consumers that the Internet Cost Recovery Fee was a tax.
Sometimes, the customer service representatives disclosed the surcharge,
but failed to explain the nature of the surcharge. Other times, the customer
service representative’s disclosure was contradicted by other, false
statements the customer service representative made about the price of the
service.
38. CenturyLink deliberately chose to call the surcharge the
“Internet Cost Recovery Fee” because of the similarity of that language to
other, industry-standard fees. Thus, when a consumer saw the fee listed in
a disclosure or a monthly bill, the consumer was misled to believe that the
Internet Cost Recovery Fee was, like other industry-standard fees,
authorized or required by law.
2. CenturyLink’s complicated promotional pricing
schemes and outdated billing systems resulted in
systemic misquotes
39. On top of the deceptive nature of the price lock and fixed-price
ad campaigns, CenturyLink relied on a complex promotional pricing scheme
that led to routine misquotes. Sometimes, CenturyLink billed consumers
more than twice the rate that CenturyLink had promised the consumer.
This occurred for two principal reasons.
40. First, the low prices CenturyLink advertised were subject to
so many limitations, requirements, and conditions that CenturyLink’s own
employees were unable to understand them or explain them to customers on
their sales calls or internet chats.
41. CenturyLink’s prices were frequently “promotional,” which
meant that after a certain period of time the price would expire and
CenturyLink’s higher “standard” rates would kick in. In order to qualify for
the low prices CenturyLink advertised, consumers often were required to
“bundle” services – i.e., order long-distance telephone or television services
along with internet service – and to sign up for electronic billing and/or
autopay. In some instances, CenturyLink’s promotions included gift cards