Attorney General Anthony Brown today announced his office entered into settlements with AT&T Mobility, LLC, Cricket Wireless, LLC, T-Mobile USA, Inc., Cellco Partnership (d/b/a Verizon Wireless), and TracFone Wireless, Inc. (collectively, the “wireless carriers”), which resolve an investigation into the wireless carriers’ advertising practices. The settlements were joined by 49 other attorneys general. The settlement addresses the wireless carriers’ alleged failure to disclose all the material terms of their offers in their advertising. “Consumers expect wireless carrier advertisements to be honest and transparent, not mislead them by failing to include all the information needed to make an informed decision,” said Attorney General Brown. “Today’s settlements benefit consumers by holding these companies accountable for their advertising practices.” Today’s settlement addresses common advertising claims made by the wireless carriers, including advertisements for “unlimited” data, “free” phone offers, monetary incentives to “switch” wireless networks, and wireless carrier plan comparisons.
Under the settlement, the wireless carriers must disclose all material terms, conditions, and limitations when making such offers. Included in the settlement’s requirements are:
• Offers for “unlimited” mobile data plans can only be made when the offered plan does not set any numerical limits on the quantity of data allowed during a billing cycle and the offer discloses any restrictions on data speed;
• Offers to pay for consumers to “switch” carriers must include disclosures of each type of fee and amounts that consumers must pay;
• “Free” device offers must include all material terms and conditions; and
• “Savings” claims must be supported by accurate comparisons of comparable goods or services.
The settlement also requires the wireless carriers to take steps to improve their customer service when addressing consumer complaints. The wireless carriers also agreed to pay $10.25 million to the attorneys generals’ offices that joined the settlement. In addition to Attorney General Brown, today’s settlement was joined by the attorneys general of Alabama, Alaska, Arizona, Arkansas, California, Colorado, Delaware, the District of Columbia, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Wisconsin and Wyoming.
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