FCC proposes to fine TracFone Wireless $6 million for subsidy violations

FILE PHOTO: The Federal Communications Commission (FCC) logo is seen before the FCC Net Neutrality hearing in Washington February 26, 2015. REUTERS/Yuri Gripas/File Photo

WASHINGTON (Reuters) – The Federal Communications Commission on Thursday proposed to fine TracFone Wireless $6 million for allegedly violating its rules governing the subsidy program for telecommunications services for low income users.

The FCC said TracFone apparently claimed federal funding for customers “who were not actually determined to be eligible for the program.”

The Lifeline program provides a monthly discount of up to $9.25 on broadband and phone service for qualifying low-income consumers. TracFone, a unit of America Movil (AMXL.MX), did not immediately comment.

Reporting by David Shepardson; Editing by Chris Reese

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source: reuters.com