Verizon Communications Inc. has reached a $1.375 million settlement with the state of Maryland over alleged misrepresentation of actual costs for FiOS television, phone and Internet services, Attorney General Douglas F. Gansler announced on Wednesday.
Maryland's Consumer Protection Division alleged Verizon's advertisements for the bundled services didn't include the cost to lease equipment or the termination fees if customers canceled because they didn't receive the services that were advertised. Verizon also allegedly didn't deliver on its promise to provide free televisions and gift cards to its new FiOS customers.
"Verizon's activities when it was rolling out FiOS established it as one of our office's biggest complaint generators," Gansler said "I'm pleased that Verizon is changing its marketing practices to accurately reflect the total cost of its services and that a significant number of consumers will receive restitution as a result of this agreement."
Verizon said it didn't violate any laws, but agreed to pay the settlement to alleviate some of the concerns of the Consumer Protection Division and customers. In addition to providing consumer restitution, the company also said it will provide clear written contracts and give a more open cancellation policy. The company will also change its advertising to reflect the correct pricing.