Texas has reached a $10.22 million settlement involving 50 jurisdictions with AT&T Mobility, LLC, Cricket Wireless, LLC, T-Mobile USA, Inc., Cellco Partnership (doing business as Verizon Wireless), and TracFone Wireless, Inc. This agreement resolves investigations by state attorneys general into the wireless carriers' deceptive and misleading advertising practices.
The investigation revealed that these companies frequently engaged in misleading advertising practices. These included misrepresentations regarding "unlimited" data advertisements that did not clearly disclose material limitations; "free" phone offers that failed to clearly disclose material conditions; monetary incentives to switch wireless networks without clear disclosure of how the incentives would be provided; and wireless carrier plan comparisons that did not disclose material differences.
As part of the settlement, the companies will cease their deceptive marketing practices and replace them with transparent and accurate advertisements and disclosures. Additionally, Texas will receive $1,152,078.23 in attorneys’ fees and costs.
“Businesses cannot lure consumers into deceptive deals through misleading marketing schemes,” said Attorney General Paxton. “Often these companies were promising ‘free’ phones with ‘unlimited’ plans which were, in reality, neither of those things. Our settlement holds these companies responsible and compels them to adopt more forthright and transparent marketing techniques.”
To read the agreement with AT&T Mobility, LLC and Cricket Wireless, LLC., click here.
To read the agreement with T-Mobile USA, Inc., click here.
To read the agreement with Cellco Partnership (doing business as Verizon Wireless) and TracFone Wireless, Inc., click here.