Verizon Wireless recently resolved a class-action lawsuit for $100 million, addressing allegations of deceptive advertising practices.
The lawsuit claimed Verizon misled customers by not disclosing additional fees, such as administrative charges, which resulted in plans costing more than advertised. The case underscores the importance of transparency in advertising and compliance with consumer protection laws like the Federal Trade Commission Act, which prohibits deceptive practices.
Why the Lawsuit Happened
The primary allegation was that Verizon’s advertisements failed to disclose the total cost of its plans, making them appear cheaper than they actually were. Customers argued that this lack of transparency influenced their decision to choose Verizon plans, ultimately costing them more than anticipated. This practice was considered deceptive because customers were not fully informed about the true cost when they signed up.
Details of the Settlement
Verizon agreed to establish a $100 million fund to compensate affected customers. Here’s how the settlement works:
| Payment Type | Amount |
|---|---|
| Base Payment | $15 for each valid claim |
| Monthly Service Bonus | $1 per month charged, up to $85 |
| Maximum Compensation | $100 per claimant |
The actual payout depends on how many claims were submitted and the length of time the administrative fees were charged to the claimant.
Who Is Eligible?
The settlement applies to Verizon customers who:
- Used a postpaid wireless or data plan between January 1, 2016, and November 8, 2023.
- Were charged the disputed administrative or telecom recovery fees during this period.
Customers needed to submit a claim form by the specified deadline to qualify for compensation.
Claim Submission Process
The claim submission period has ended, but eligible customers had to follow these steps to file:
- Verify Eligibility: Check if they were charged administrative fees during the specified period.
- Access the Claim Form: Obtain the form from the settlement website or request it from the settlement administrator.
- Submit Required Documents: Include billing statements or receipts to support the claim.
- Submit the Form: Mail the form or submit it online before the deadline.
Once submitted, claimants received confirmation and updates about the settlement’s progress.
Payout Timeline and Method
Payments will be distributed after the settlement gains final approval. Eligible claimants will receive their compensation via check or electronic transfer. Unclaimed or undeliverable funds will be processed in compliance with state unclaimed property laws.
What Happens Next?
For those who submitted claims, the next step is to wait for the disbursement of funds. However, no new claims can be submitted now that the deadline has passed. If you missed the deadline, unfortunately, you won’t receive any compensation, even if you met the eligibility requirements.
This settlement highlights the significance of transparency in advertising and consumer protection. Companies like Verizon are held accountable when their practices do not align with legal and ethical standards. For consumers, it serves as a reminder to scrutinize contracts and terms to avoid unexpected charges.
FAQs
1. What was the basis of the Verizon class-action lawsuit?
The lawsuit alleged that Verizon failed to disclose administrative fees in its advertisements, leading to higher-than-expected plan costs for customers.
2. How much money is each customer eligible to receive?
Each eligible customer can receive up to $100, consisting of a $15 base payment and $1 for every month they were charged the disputed fees (up to $85).
3. Who qualified for the settlement?
Verizon customers with postpaid wireless or data plans charged administrative fees between January 1, 2016, and November 8, 2023, were eligible.
4. Can I still file a claim?
No, the deadline for filing claims has passed. Without submitting a claim, eligible customers will not receive compensation.
