FCC Fines Purple Communications $11.9 Million for 'Improperly Billing' TRS Fund

The FCC fined Purple Communications $11.94 million for "improperly billing" the Telecommunications Relay Service Fund, which subsidizes services for persons with speech and hearing disabilities. "The Commission found that Purple sought and received millions in reimbursements from the TRS Fund and failed to reasonably verify over 40,000 'users' with obviously false names, including gibberish and profanities," an FCC news release said Friday. "As a result of Purple’s inadequate verification procedures, 'users' could have registered with names like ‘sdfsdf cicwcicw,’ 'Myname Yourname,' or 'Lot$a Money,' for which Purple could be reimbursed," it said. Enforcement Bureau Chief Travis LeBlanc said any improper billing of a federal program is unlawful, "but it is particularly unconscionable when that money is diverted from providing service to consumers with real speech or hearing disabilities who need to be able to make phone calls." The commission found no reason to cancel or reduce a proposed penalty in a notice of apparent liability for forfeiture after reviewing Purple's response, an FCC order said. Commissioner Michael O'Rielly concurred in the action. A Purple representative had no immediate comment.