Top Three Carriers Settle for $10 Million for Deceptive Advertising

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Top Three Carriers Settle for $10 Million for Deceptive Advertising

AT&T, T-Mobile, and Verizon have settled with a 50-state coalition of attorneys general for more than $10 million over deceptive advertising about “unlimited” data plans.

AT&T, T-Mobile, and Verizon sell “unlimited” plans, but have not always been clear about the real limits of those plans. In many cases, once users reach certain data usage thresholds, the quality and speed of service is reduced until the next billing cycle.

“New Yorkers, and all Americans, deserve to know that when they buy a service or product, they will be treated fairly and can trust what the seller is saying,” said Attorney General Letitia James. “AT&T, Verizon, and T-Mobile lied to millions of consumers, making false promises of free phones and ‘unlimited’ data plans that were simply untrue. Big companies are not excused from following the law and cannot trick consumers into paying for services they will never receive. We will continue to go after companies that hurt everyday Americans and try to take advantage of this basic and critical service.”

The settlement requires the three carriers to pay $10,224,135 and to clarify their advertising and marketing. In particular, “unlimited” plans can only be marketed as such if there are no limits on the amount of data used per billing cycle.

The settlement also requires carriers to be more upfront regarding promotions that offer “free” phones and devices, including what consumers must do to qualify. The carriers must also disclose the terms of promotions that promise to pay customers to switch from other carriers, as well as to have a reasonable basis to advertising the “savings” customers will experience from switching.

Carriers will also be required to appoint personnel to work with state AGs to address consumer complaints.

In addition, the companies must appoint a dedicated representative to work with the attorneys general to address ordinary complaints filed by consumers. They must also train their customer service representatives to comply with the terms of the agreement and implement and enforce a program to ensure compliance.

The settlement addresses many of the common sense complaints consumers have had regarding wireless carriers for years.

Top Three Carriers Settle for $10 Million for Deceptive Advertising
Matt Milano

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