Top Carriers Will Pay $10M to Resolve States' Probes on False Ad Claims

AT&T, T-Mobile and Verizon Wireless will pay about $10.25 million to the 50 states and the District of Columbia under an agreement that settles claims of deceptive and misleading advertising practices, multiple state AGs announced Thursday. The bipartisan AGs signed a pact with AT&T, T-Mobile and Verizon Wireless to resolve the investigations. The three carriers “baited consumers with deceptive claims about ‘unlimited’ data, ‘free’ phone offers and incentives to switch, only to switch the offer and not deliver on their advertised claims,” Minnesota Attorney General Keith Ellison (D) said. In addition to the monetary penalties, the carriers agreed to make future ads truthful, accurate and not misleading, Ellison's office said. Going forward, unlimited must mean no numerical limits and such plans should disclose any data speed restrictions and what triggers them, it said. Carriers offering to pay for customers to switch companies must clearly disclose what and how they will pay consumers, it said. Among other requirements, the carriers must present clear terms and conditions for so-called free devices or services, it said. A CTIA spokesperson said the “voluntary agreements reflect no finding of improper conduct and reaffirm the wireless industry’s longstanding commitment to clarity and integrity in advertising so that consumers can make informed decisions about the products and services that best suit them.” T-Mobile said, “After nine years, we are glad to move on from this industry-wide investigation with this settlement and a continued commitment to the transparent and consumer-friendly advertising practices we’ve undertaken for years.” AT&T and Verizon referred us to CTIA’s statement. State AGs slammed the carriers as they applauded the settlement. New York AG Letitia James (D) said it’s a good resolution after carriers “lied to millions of consumers.” Many wireless carriers' deals are “too good to be true,” California AG Rob Bonta (D) said. Ohio AG Dave Yost (R) said “it's unacceptable to make false promises about what consumers might expect from their wireless carriers.”