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‘Fine print’ discloses
added fees for DSL

Question: Verizon advertises its DSL service online at $29.95. This is incorrect, as the real cost is $32.35 and not $29.95 as they advertise. Verizon has a hidden $2.40 charge as a so-called "Supplier FUSF Recovery Fee" that they add to the advertised $29.95 price. Isn't what Verizon doing deceptive advertising?

Answer: Verizon discloses its fees, surcharges and taxes "in supporting text," said Verizon Hawaii spokeswoman Ann Nishida.

"It's no different from a car dealership that advertises a car for X price, which does not include charges such as tax, licensing and destination charges," she said.

We found information about additional costs in the "fine print" on the same page as the "Get DSL for as low as $29.95/month" online offer at www22.verizon.com/ForHomeDSL/Channels/DSL/
bridge/standard.asp?promotion_code=VZBNR/W28&variant=.

The offer to all new DSL customers says it also would entail a $19.95 shipping and activation charge, a monthly Supplier FUSF recovery charge and a tax recovery charge where applicable -- plus a one-year commitment.

Nishida said customers are made aware of all the applicable charges before finalizing their orders.

There are many different factors involved in determining whether an ad is deceptive, noted Stephen Levins, executive director of the state Office of Consumer Protection.

But the bottom line is that an ad shouldn't be "intentionally designed to be unclear to a consumer," he said.

"As a general proposition, businesses, when they advertise, should disclose all the charges that are going to be charged to the consumer," he said, emphasizing that he was speaking generally and not specifically about the Verizon ad.

There may be instances in which the actual amount of taxes may be uncertain, for example, because they're dictated by a percentage, he said. In that case, it's OK to just initially say "plus tax" instead of a specific amount, he said.

But once a consumer has agreed to an offer, "There shouldn't be any other surprises (in terms of actual charges) after you've provided your credit card and they process the charge."

A business, "to avoid any kind of confusion or alleged misrepresentation ... should endeavor to disclose to the best of its ability what is going to be charged to the consumer," Levins said. "The preferable practice is to include all the applicable charges -- the actual dollar amount."

That holds for ads in publications, television or on the Internet, he said.

Levins said anyone concerned about inadequate disclosure in an ad can file a complaint with his office. Call 587-3222.

Q: Does everyone who received a state income tax refund on their 2003 taxes receive a 1099-G statement? I did not receive a 1099-G although I filed an itemized deduction and received a refund. Do I have to show this refund on my 2004 return without a 1099-G?

A: Generally, any taxpayer who itemized deductions and received a refund is issued a Form 1099-G, according to the state Department of Taxation. So you should have received the form.

However, this year, the mailing of some of those forms was "inadvertently delayed" until Feb. 22, said Alexis Shiohara, a tax specialist with the department's Technical Section. Affected were taxpayers who chose to have their refunds direct-deposited last year.

"Taxpayers who itemize their federal or state income tax returns and claim a deduction for state income taxes paid generally must report their state refunds as income in the following year," Shiohara said.

If you have not received a 1099-G, she said to contact the Taxpayer Services Branch at 587-4242 or toll-free at (800) 222-3229.

Otherwise, Shiohara said, taxpayers should refer to their 2003 tax returns and the state tax refund worksheet (page 27 of N-11/N-12 instructions) to determine the taxable refund for the state.

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