$55 Million in 3 Years

Sorenson to Pay More Than $15M to Settle FCC Probe into TRS Violations

May 29, 2013 by Matthew Schwartz|Top News

In March 2011, the Enforcement Bureau began asking Sorenson about its compliance with rules requiring registration and verification of Video Relay Service IP Relay users assigned special ten-digit relay numbers, the bureau’s order said (http://bit.ly/ZcvdAu). The bureau was investigating whether the company billed the fund for calls made by “unregistered, unverified, or ineligible individuals,” as well as for “calls that were made by or on behalf of the provider itself,” according to an FCC statement. That refers to calls made by Sorenson employees but billed to the fund, an FCC spokesman said. The commission confirmed in a declaratory ruling in 2010 that such calls are not compensable, he said.

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Sorenson agreed to pay $15.75 million to settle an FCC investigation into whether the company improperly billed the Telecommunications Relay Service Fund, the commission said Tuesday. Just more than $4.2 million will go to reimburse the TRS Fund, with the remaining $11.5 million going to the U.S. Treasury as a “voluntary contribution.” Sorenson did not comment.

Sorenson told the bureau that, as of July 2012, it has registered each user with a process requiring the user to provide a name and street address. As of August 2012, Sorenson has verified the information and confirmed that the users had self-certified that they had a disability and were eligible to use the IP Relay service, the company said.

As part of the settlement, Sorenson agreed to implement a compliance plan requiring detailed operating procedures, comprehensive employee training and immediate reporting of possible violations. Enforcement Bureau Chief Michele Ellison said the bureau would “continue to ensure that providers only receive their fair share of TRS funds. Consumers with disabilities deserve no less."

This is the latest in a series of TRS enforcement actions that have netted more than $55 million in reimbursements and voluntary payments in the last three years, the FCC said. Earlier this month, AT&T paid more than $18 million to settle a commission investigation into improper TRS billing (CD May 8 p11). The commission’s largest settlement came in 2010, when Purple paid nearly $20 million to settle a similar investigation (CD Sept 21/10 p9).