What is the USF (universal service fund) fee on my phone bill?
Congress and the Federal Communication Commission (FCC) established the federal Universal Service Fund in order to make telecommunication services more widely accessible to low-income and rural communities. To fund the Federal USF, the FCC assesses telecommunications companies’ revenues interstate (and international) telecommunications services. Telecommunications companies may pass along these costs via line item charges on their customers’ telephone bills.
Federal law allows states to establish their own Universal Service funds and collect contributions from intrastate telecommunication carriers. Currently, USF charges may be assessed as a "Federal Universal Service Fee" or "Universal Connectivity Fee."
Universal Service Fund (USF) Class Action Lawsuits
Conflicts arise from charges associated with the USF when telecommunication providers bill customers for both intrastate and interstate services. Although states can implement their own Universal Service programs, the law holds that they cannot rely on or burden the funding of the federal USF. Thus, state Universal Service programs can be funded by assessing intrastate services, but cannot be funded by assessing interstate telecommunications services.
Telecommunications providers have been the subject of class action lawsuits alleging that these companies assessed charges for both intrastate and interstate services.
MCI (now Verizon) Universal Service Fund (USF) Class Action Lawsuit
Girard Gibbs achieved a $2.8 million settlement on behalf of MCI customers who were improperly assessed both state and federal USF charges for use of a private telephone line. The lawsuit contended that, under the Communications Act, telecommunication carriers must assess either state or federal USF charges from consumers, but not both. The settlement provided reimbursement for consumers for the alleged overcharge.
Questions about Universal Service Fund Fees?
Speak with our consumer attorneys by calling toll-free (866) 981-4800 or by filling out the form to the right.
Why Girard Gibbs?
Girard Gibbs is a national litigation firm representing consumers, investors, employees, and small businesses in cases involving consumer protection, personal injury, securities, antitrust, and employment laws. The firm’s senior partners, Daniel Girard and Eric Gibbs, have been selected for inclusion in The Best Lawyers in America® 2012 and Northern California Super Lawyers, and have earned AV-Preeminent ratings from Martindale-Hubbell, recognizing them in the highest class of attorneys for professional ethics and legal skills.
