AT&T to settle probe of wireless cancellation fees

AT&T Inc.'s mobile phone unit agreed to pay $30.6 million to settle an investigation by California regulators over early-termination fees charged to wireless customers.

The settlement includes a $12.1-million penalty imposed in 2003 and $18.5 million in refunds to customers who paid the fees, according to a settlement approved Thursday by the California Public Utilities Commission.

Regulators said AT&T's Cingular Wireless unit failed to give subscribers a trial period in which to cancel service before having to pay contract-termination fees of as much as $550.

The settlement pertains only to California customers who paid an early-termination fee between Jan. 1, 2000, and April 30, 2002, Cingular spokeswoman Lauren Garner said.