Connecticut Attorney General's Office

Press Release

Attorney General Investigates AT&T For Millions Charged To CT Ratepayers For Use Of Its Logo

June 16, 2009

Attorney General Richard Blumenthal today announced that he is investigating why AT&T charged state consumers nearly $145 million for the use of its logo in Connecticut, and then funneled that income -- avoiding Connecticut taxes -- to a Nevada affiliate.

This practice was reported and confirmed by AT&T's auditors, Ernst & Young, and an independent audit by Barrington-Wellesley Group made public by the Department of Public Utility Control (DPUC).

"Pleading poverty, bleeding jobs and then charging $145 million for using its logo is both insult and injury to AT&T's consumers and Connecticut taxpayers. Consumers would surely rather go without the AT&T logo affixed to Connecticut buildings or bills than pay these unconscionable costs.

"AT&T's logo does nothing for consumers who simply want good service and jobs maintained. Even while draining our state of jobs and service quality, AT&T has apparently diverted tens of millions of consumer dollars to a Nevada affiliate for the use of its logo in Connecticut.

"My office is investigating these charges -- on behalf of both consumers who paid them, and Connecticut taxpayers who suffer revenue losses when royalties are diverted tax-free out of state. AT&T must be held accountable for every tax-free dollar -- nearly $145 million documented so far -- questionably siphoned away from AT&T consumers in Connecticut."