Frontier Communications customers may be owed refunds for their Internet service because, a new lawsuit alleges, the company deceptively billed customers fees the company is not entitled to receive.

Four Frontier customers — three in Minnesota and one in New York — are suing the company for add-on charges the company claims are required by the government, but in fact are pocketed by the phone company.

The lawsuit claims Frontier is guilty of fraud, breach of contract, deceptive practices, false advertising and violations of the Federal Communications Act and the Internet Tax Freedom Act.

The plaintiffs claim broadband customers are being billed for certain state and federal taxes, 911 surcharges, and Universal Service Fund fees, even though they don’t apply to broadband service.

“It is merely a junk fee that Frontier imposes on customers,” the lawsuit says.  “The fee bears no relationship to any governmentally-imposed fee or regulation, and is nothing other than an effort by Frontier to increase prices above the advertised price.”

Adding fuel to the fire, Frontier recently imposed a new “HSI Surcharge” on broadband customers, and as Stop the Cap! reported earlier, some company representatives have claimed that fee is government mandated as well.

In fact, federal law bans most taxes on Internet service under the Internet Tax Freedom Act.  Since broadband customers cannot dial 911 from a DSL modem, 911 surcharges should not apply either.  USF fees only apply to voice telephone service.  Frontier, the suit alleges, levies all of these fees on the broadband portion of customer bills.

Frontier has more than 7 million customers nationwide, although the company does not disclose how many of them purchase broadband service.  If the lawsuit achieves class action status, Frontier could be required to return the ill-gotten gains to customers if a judge agrees they were wrongly collected.  That could cost the company millions in retroactive refunds.