Attorney General Kathy Jennings announced a settlement totaling $10.25 million with several major wireless carriers, including AT&T Mobility, LLC, Cricket Wireless, LLC, T-Mobile USA, Inc., Cellco Partnership doing business as Verizon Wireless, and TracFone Wireless, Inc. This agreement concludes investigations by state attorneys general into deceptive advertising practices by these companies.
Jennings emphasized the importance of consumer protection in her statement: “Today’s settlement further demonstrates our commitment to protecting Delawareans and holding companies accountable when they attempt to deceive and mislead our citizens,” adding that efforts will continue to safeguard consumers in Delaware.
The settlement includes assurance terms addressing misleading advertising practices related to "unlimited" data plans that did not clearly disclose limitations, "free" phone offers without clear conditions, incentives for switching networks that lacked transparency on how they would be provided, and plan comparisons missing key differences.
As part of the agreement, the wireless carriers are required to ensure future advertisements are truthful and non-misleading. They must refer to "unlimited" data plans only if no numerical limits exist during a billing cycle while disclosing any restrictions on data speed. Offers for switching carriers must clearly outline fees and payment forms. Promotions for free devices or services need to fully disclose conditions for eligibility. Lease agreements should be transparently communicated as such.
Additionally, claims of savings must be based on reasonable comparisons with other providers' products or services. The carriers will also appoint an employee dedicated to handling consumer complaints with attorneys general and train customer service representatives to comply with these terms.
Delaware will receive over $70,000 in attorneys’ fees and costs from this multi-jurisdictional settlement.