US MVNO Tracfone, a unit of America Movil, has been ordered to pay California USD 24.4 million in unpaid fees and interest. TracFone did not pay fees required of all regulated telecoms companies, AP reports, citing a 11 July decision from ALJ McKinney, the California Public Utilities Commission's presiding officer.
Regulators also said that no penalty is warranted, but because no fees or surcharges were collected from customers up front, the company will bear the cost. TracFone can appeal or request review within 30 days of the decision.
The Consumer Protection and Safety Division brought action against TracFone, saying the company did not collect user fees from 2004 through 2012 or pay surcharges for public programs, like the Deaf and Disabled Telecommunications Program, from 2000 through 2012. TracFone started paying the various fees following a decision in 2012. However, the current order assesses the fees owed from before that decision.
Part of the issue was an exemption in state law for phone debit cards. TracFone said it fell under that exemption, but the state disagreed, according to the order. TracPhone's prepay mobile service requires customers to acquire a mobile phone and then buy minutes to use it.
