Lawsuit forces CenturyLink to stop charging “Internet Cost Recovery Fee”

CenturyLink has agreed to pay a $6.1 million penalty after Washington state regulators found that the company failed to disclose fees that raised actual prices well above the advertised rates. CenturyLink must also stop charging a so-called "Internet Cost Recovery Fee" in the state, although customers may end up paying the fee until their contracts expire unless they take action to switch plans. CenturyLink charged its Internet Cost Recovery Fee to 650,000 Washingtonians. The attorney general's office said that "CenturyLink is required to... stop charging its Internet Cost Recovery Fee" in Washington state. CenturyLink says the fee "helps defray costs associated with building and maintaining CenturyLink's High-Speed Internet broadband network, as well as the costs of expanding network capacity to support the continued increase in customers' average broadband consumption." In other words, the fee covers the company's normal costs of doing business but is excluded from advertised rates in order to make CenturyLink's service sound cheaper than it really is. CenturyLink has been charging $1.99 for the Internet Cost Recovery Fee in Washington and continues to charge an Internet Cost Recovery Fee of $3.99 per Internet connection in other states.