Attorney General Aaron Ford has announced a settlement of $10.25 million across 50 jurisdictions with AT&T Mobility, Cricket Wireless, T-Mobile USA, Inc., Cellco Partnership (also known as Verizon Wireless), and TracFone Wireless, Inc. This resolution comes in response to state attorneys general investigations into the wireless carriers’ deceptive and misleading advertising practices.
Ford stated, “My office will continue to hold accountable those companies would misrepresent themselves to Nevada consumers for financial gain.” He added that the settlement not only brought millions into Nevada but also secured assurance terms that would prevent such misrepresentations in the future.
The assurance terms are a crucial part of the settlements and address common misleading advertising practices of the wireless carriers. These include misrepresentations concerning “unlimited” data advertisements, “free” phone offers, monetary incentives to “switch” wireless networks, and wireless carrier plan comparisons.
The assurance terms will require the wireless carriers to ensure all future advertisements and representations are truthful, accurate, and non-misleading. They must clearly disclose any restrictions on “unlimited” mobile data plans or conditions for “free” devices or services. They must also be transparent about any material requirements consumers must meet to switch carriers or lease devices. Furthermore, they should only claim that a consumer will save money by purchasing its products or services if there is a reasonable basis for such claims.
In addition to these measures, each carrier must appoint a dedicated employee to work with the attorneys general to address ordinary complaints filed by consumers. They must also train their customer service representatives to comply with these terms and implement a program ensuring compliance with these terms.
