Alabama Attorney General Steve Marshall announced a $10.25 million settlement with major telephone carriers including AT&T Mobility, LLC, Cricket Wireless, LLC, T-Mobile USA, Inc., Cellco Partnership (also known as Verizon Wireless), and TracFone Wireless, Inc. The settlement resolves the state attorneys general investigations into deceptive and misleading advertising practices by these carriers.
The State of Alabama will receive $201,697.52 in attorneys’ fees and costs as part of the settlements which involve 50 jurisdictions. "Phones have become an indispensable part of our day-to-day lives, so when a product is advertised to have unlimited data, or a free phone, consumer interest is understandable. However, businesses are obligated to clearly disclose limitations, additional fees, and conditions which is why this settlement was necessary,” said Attorney General Marshall.
He further added that their 50-state coalition has established a settlement that includes assurances which will greatly benefit consumers throughout the state. These assurance terms form a key component of the settlements and address common misleading advertising practices by the carriers.
These include misrepresentations concerning “unlimited” data advertisements failing to clearly disclose material limitations; “free” phone offers not disclosing material conditions; monetary incentives to “switch” wireless networks without clear disclosure on how these incentives would be provided; and wireless carrier plan comparisons not disclosing material differences.
The assurance terms will require the carriers to take specific actions to prevent such practices in future.