Verizon, AT&T, and T-Mobile have agreed to pay $10 million in a settlement with a coalition of 50 attorneys general, putting an end to claims that the carriers deceived customers with their “unlimited” plans and “free” phone offers. The agreement mandates transparent advertising, requiring the carriers to represent the terms and limitations of their services accurately.
Transparency in Advertising
The settlement requires Verizon, AT&T, and T-Mobile to reassess how they advertise their “unlimited” plans, focusing on ensuring that their marketing accurately reflects the true nature of these offerings.
Specifically, they are now mandated to use the term “unlimited” only if there are no limits on how much data a customer can use during a billing cycle. This means that customers should be able to use data freely without fear of being throttled or having their speeds reduced after reaching a certain threshold.
Moreover, the settlement requires these companies to be transparent about any speed restrictions that may apply to their “unlimited” plans. This means that if there are limitations on data speeds once a certain threshold is reached, this information must be clearly disclosed in their advertisements. Customers should be informed about the threshold at which data speeds may be reduced so that they can make informed decisions about their plans based on their needs and usage patterns.
Clarity on Incentives
The attorneys general focused on the allegedly deceptive practices related to offers that incentivize customers to switch carriers and “free” phone offers. As part of the $10 Million settlement, Verizon, T-Mobile, and AT&T are now obligated to provide clear and complete information about these offers in their advertisements.
Specifically, the carriers must disclose all terms and conditions associated with these incentives, including the exact amount customers will be paid for switching and the timeline for receiving these payments. Additionally, any requirements that customers must meet to qualify for these offers must be clearly stated, as well as any potential hidden fees or costs that may apply.
This new requirement aims to ensure that customers have all the information they need to make informed decisions about switching carriers or taking advantage of “free” phone offers, without being misled by unclear or incomplete advertising practices.
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$10 Million Fine
As part of the settlement, the three carriers must appoint a dedicated representative to address customer complaints, ensuring accountability and responsiveness to consumer concerns. However, despite the settlement, the companies deny any wrongdoing, emphasizing their commitment to advertising clarity and integrity.
To settle the lawsuits, AT&T, T-Mobile and Verizon agreed to advertise their plans as “unlimited” only if there’s no limit on how much data customers can use during a month. This is in addition to paying $10 Million in fines.
Big companies are not excused from following the law and cannot trick consumers into paying for services they will never receive.
This settlement comes amidst increased scrutiny of major telecom carriers, following recent fines by the Federal Communications Commission (FCC) totalling almost $200 million. The FCC fined Verizon, AT&T, and T-Mobile for allegedly illegally sharing customers’ location data, highlighting the need for continued oversight and enforcement in the telecommunications industry.
