Attorney General Charity Clark today announced Vermont’s participation in a multistate settlement with a coalition of wireless carriers AT&T Mobility, Cricket Wireless, T-Mobile, Verizon Wireless, and TracFone Wireless, Inc. The settlement resolves investigations into deceptive and misleading advertising practices. Vermont will receive $67,237 through this settlement and, nationwide, 50 jurisdictions will receive a total of $10.25 million.
“Deceptive and misleading offers to incentivize customers to switch carriers will not be tolerated. Deception like this harms not only consumers, but the whole marketplace,” said Attorney General Clark.
The settlement announced today addresses common misleading advertising practices of the Wireless Carriers, including misrepresentations concerning: (1) “unlimited” data advertisements; (2) “free” phone offers; (3) monetary incentives to “switch” wireless networks; and (4) wireless carrier plan comparisons.
In addition to the monetary portion of the settlement, the wireless carriers must change their business practices in the following ways:
- 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 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 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 clearly disclose 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.
A copy of the Verizon settlement agreement can be found here. A copy of the T-Mobile settlement agreement can be found here. A copy of the AT&T settlement agreement can be found here.
CONTACT: Amelia Vath, Outreach and Communications Coordinator, 802-828-3171