AT&T: Third-party purchases refunded on request, regardless of reason

AT&T (NYSE:T) has told the Federal Communications Commission that it typically responds to subscriber requests for refunds on third-party purchases by granting the request, whatever the underlying reason. In a statement filed Apr. 18 in response to the FCC's investigation into bill shock, AT&T director Toni Acton writes that the operator's customer care representatives do not distinguish whether a subscriber is calling to simply ask about a third-party purchase or complaining about an unauthorized charge--therefore, AT&T does not track customer complaints of unauthorized charges at this level.

"AT&T Mobility's general practice is to refund customers for third party billing purchases upon request, regardless of the reason behind the request," Acton states. "We advise customers that request a refund for third party content charges that their account will be credited for that purchase in the next billing cycle."

Acton goes on to write that AT&T handles subscription cancellations and issues credits for disputed charges on the customer's behalf, advising subscribers on their bill of the ability to obtain help and manage their purchases online or by calling customer service.

"In addition, we include information on our website for customers who believe they may have been billed in error for a purchase on their mobile device at att.com/wireless and how they can challenge a charge," Acton notes.

AT&T monitors refund rates for third-party purchases by reviewing monthly revenue and refund reports by program or storefront providers, applying that data to determine whether customers may have been subjected to unauthorized charges. In addition, the carrier's mobile commerce team works alongside its customer care staff to monitor escalations. 

"If a program or storefront provider reaches our established refund rate limit, or should we determine a trend in customer escalations regarding a particular program, we promptly escalate the issue and initiate an investigation, including investigating any specific complaints or the circumstances around the rise in refunds," Acton explains. "The results of such an investigation could include suspension or termination of our billing relationship with the provider."

For more:
- read the AT&T letter to the FCC

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