Montgomery, AL – May 15, 2024 — Alabama Attorney General Steve Marshall announced today a $10.25 million settlement with major wireless carriers including AT&T Mobility, LLC, Cricket Wireless, LLC, T-Mobile USA, Inc., Cellco Partnership, d/b/a Verizon Wireless, and TracFone Wireless, Inc. This settlement resolves investigations by state attorneys general into the deceptive and misleading advertising practices of these companies. As part of the multi-state agreement, Alabama will receive $201,697.52 in attorneys’ fees and costs.
“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. “Our 50-state coalition establishes a settlement that includes assurances that will greatly benefit consumers throughout the state.”
The settlement addresses several common misleading advertising practices by the Wireless Carriers, including:
- Truthful Advertising: Ensure all future advertisements and representations are truthful, accurate, and non-misleading.
- Clear Disclosures for “Unlimited” Plans: Refer to “unlimited” data plans only where no numerical limits are set during a billing cycle, and clearly disclose any data speed restrictions and their triggers.
- Transparent Switch Offers: Clearly disclose the type, amount, form, schedule, and conditions of fees paid to consumers for switching carriers.
- Clear Terms for “Free” Offers: Disclose all material terms and conditions for receiving “free” devices or services.
- Lease Agreement Clarity: Make it clear to consumers when they are entering into a lease agreement for wireless devices.
- Truthful Savings Claims: Only claim consumers will save money when there is a reasonable basis for such claims, with clear disclosure of any material differences in compared goods or services.
- Consumer Complaint Resolution: Appoint a dedicated employee to address consumer complaints.
- Customer Service Training: Train customer service representatives to comply with these terms and implement a compliance program.
This settlement is part of a broader effort by state attorneys general to ensure that wireless carriers adhere to fair advertising practices and provide clear and honest information to consumers. The multi-state agreement, involving 50 jurisdictions, underscores the commitment to protecting consumer rights and maintaining transparency in the wireless industry.
