FCC Proposes $6 Million Fine Against Tracfone for Violating Lifeline Program Rules

The Federal Communications Commission proposed a $6,013,000 fine against TracFone Wireless, a prepaid wireless provider offering Lifeline service under the SafeLink Wireless brand, for apparent violations of the FCC’s Lifeline program rules. TracFone apparently claimed federal Lifeline funding for customers who were not actually determined to be eligible for the program, which helps make communications services more affordable for low-income Americans.In 2018, TracFone apparently sought and obtained federal Lifeline support for hundreds of ineligible subscribers in Florida. TracFone’s sales agents—who were apparently compensated via commissions for new enrollments—apparently manipulated the eligibility information of existing subscribers to create and enroll fictitious subscriber accounts.