PORTSMOUTH, Va. (WAVY) — State attorney generals, including Virginia’s, announced a $10.25 million settlement with multiple cell phone providers on Thursday, a release states.
The lawsuit alleged that the carriers were misrepresenting certain advertisements surrounding undisclosed restrictions to “unlimited” data, “free” phone offers, etc. This included AT&T Mobility, LLC, Cricket Wireless, LLC, T-Mobile USA, Inc., Cellco Partnership, d/b/a Verizon Wireless and TracFone Wireless, Inc.
“The Wireless Carriers engaged in a number of deceptive practices that misled consumers about the nature of unlimited data plans, free phone offers, and other inducements to sign up for wireless services,” Attorney General Jason Miyares said. “I am pleased that we were able to reach a fair and reasonable agreement to ensure that these practices do not continue going forward.”
Moving forward, the companies are required to do the following:
- Make all future advertisements and representations truthful, accurate and non-misleading;
- Refer in marketing to “unlimited” mobile data plans only where such plans do not set any numerical limits on the quantity of data allowed during a billing cycle and clearly and conspicuously disclose any restrictions on data speed, as well as the triggers of such restrictions;
- Offer to pay for consumers to “switch” carriers only where they clearly and conspicuously disclose the type of fees and amounts that they will pay consumers, the form and schedule that such payment will take and all material requirements that consumers must satisfy in order to qualify and receive such payment;
- Offer wireless devices or services for “free” or similar terms only where they disclose clearly and conspicuously all material terms and conditions that the consumer must meet in order to receive the “free” devices or services;
- Make offers to lease wireless devices only where it is made clear to the consumer that the consumer will be entering into a lease agreement;
- Make representations that a consumer will save money by purchasing its products or services only where it has a reasonable basis to do so based on comparisons with the prices of comparable goods or services of other providers, or where any material differences between those goods or services are clearly and conspicuously disclosed;
- Appoint a dedicated employee to work with the attorneys general to address ordinary complaints filed by consumers; and
- Train its customer service representatives who speak with consumers to comply with these terms and implement and enforce a program to ensure compliance with these terms.
The Commonwealth of Virginia will receive $192,061.83 in attorneys’ fees and costs as part of the 50-jurisdiction settlements with the Wireless Carriers.
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