Verizon, AT&T, and T-Mobile You will pay combined $10.22 million to a group of states to settle allegations that carriers lied to customers about their “unlimited” plans and “free” phone offers. The settlement, which comes after an investigation by a coalition of 50 attorneys general, requires the three companies to make their advertising more transparent.
under Terms of agreementVerizon, T-Mobile, and AT&T can only advertise their plans as “unlimited” if there are no limits on the amount of data someone can use during a billing cycle. Advertisements must “clearly and conspicuously” state that speed limits may apply, as well as specify how much data customers can use before triggering a slowdown.
Additionally, the Attorney General pursued allegedly misleading claims made by Verizon, T-Mobile, and AT&T in ads that promised to “pay” customers to switch carriers. The three companies must now clearly disclose the terms and conditions associated with the offer, including how much the customer will be paid and when they will receive their payment. Carriers must also disclose the requirements customers must meet to receive “free” phone offers, along with any hidden fees.
“AT&T, Verizon, and T-Mobile lied to millions of consumers, making false promises of free phones and ‘unlimited’ data plans that were simply not true,” New York Attorney General Letitia James said in a statement. “Big companies are not exempt from following the law, and they cannot deceive consumers into paying for services they will never get.”
Verizon, T-Mobile and AT&T will also have to designate a “dedicated representative” to receive customer complaints. The three companies deny any wrongdoing. “These voluntary agreements do not reflect any consequence for inappropriate conduct and reaffirm the wireless industry’s longstanding commitment to clarity and integrity in advertising so that consumers can make informed decisions about the products and services that work best for them,” Nick Ludlum, senior vice president of CTIA, says. , the trade group that represents transportation companies the edge.
This isn’t the only scrutiny the Big Three airlines have faced recently. Last week, the FCC fined Verizon, AT&T, and T-Mobile nearly $200 million over allegations they illegally shared customers’ location data.
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