Attorney General Michelle Henry has announced a settlement of $10.25 million involving major mobile service carriers over allegations of deceptive advertising practices. The settlement involves 50 jurisdictions and targets companies like AT&T, Verizon Wireless, Cricket, and T-Mobile. These carriers have been accused of misleading consumers with claims of "unlimited" data plans and "free" phones.
The agreement mandates that the carriers must ensure transparency in their future advertisements, clearly disclose any associated fees or agreements, and properly train their customer service staff. As part of this settlement, Pennsylvania will receive over $260,000 to cover costs and fees.
Attorney General Henry emphasized the importance of honesty in consumer dealings: “The demand and need for mobile devices are extraordinary, and Pennsylvanians deserve reliable information and the truth about costs when making important decisions that impact their budgets.” She further criticized the carriers for promoting free devices that actually incur significant costs for consumers.
The settlement specifically addresses false claims related to unlimited data plans, free phone offers, monetary incentives for switching networks, and wireless carrier plan comparisons. It was noted that these companies often failed to adequately disclose the limitations or conditions tied to such offers.
The legal documents were filed with AT&T Mobility, LLC; Cricket Wireless, LLC; T-Mobile USA, Inc.; Cellco Partnership (doing business as Verizon Wireless); and TracFone Wireless, Inc.