Federal Communications Commission member Mignon Clyburn said Wednesday that Verizon Wireless' justifications for raising the fines it charges for canceled contracts are "unsatisfying and, in some cases, troubling." Commissioner Clyburn criticized the company's response to an inquiry by the agency earlier this month that asked the nation's largest cell phone operator to explain why it more than doubled its early termination fees for smart phone customers starting in November. "Consumers already pay high monthly fees for voice and data designed to cover the costs of doing business," Commissioner Clyburn said. "So when they are assessed excessive penalties, especially when they are near the end of their contract term, it is hard for me to believe that the public interest is being well served." A Verizon Wireless spokesman said customers always have the choice of purchasing an device at full price that does not come with early termination fees. Commissioner Clyburn expressed concern with the company's admission that the ETFs are tied to general administrative costs like advertising and retail store operations. She also expressed concern that consumers were being charged "phantom fees" for inadvertently pressing a key on their phones that launched the provider's mobile Internet services.
