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+--- Thread: Big Three carriers... "claims" of false advertising... "Settled" (/Thread-Big-Three-carriers-claims-of-false-advertising-Settled)
Big Three carriers... "claims" of false advertising... "Settled" - Maxmars - 05-12-2024
In what may be a classic case of shameless commerce "justice," a 49-state lawsuit against the "Big Three" (T-Mobile, Verizon, and AT&T) ended in "settlement" with the usual (or dare I say obligatory) phrase stating that the settlement "reflect[s] no finding of improper conduct."
With the exception of Florida, which did not participate in the action, the settlement consists of some $10 million in compensation from the companies ... which will make the allegations of the US states (that the carriers falsely advertised wireless plans as "unlimited" and phones as "free") go away... while holding no one accountable... Oh, and by the way, "It's unclear whether consumers will get any refunds out of the settlement, however."
From ArsTechnica: Big Three carriers pay $10M to settle claims of false “unlimited” advertising
"A multistate investigation found that the companies made false claims in advertisements in New York and across the nation, including misrepresentations about 'unlimited' data plans that were in fact limited and had reduced quality and speed after a certain limit was reached by the user," the announcement said.
T-Mobile and Verizon agreed to pay $4.1 million each while AT&T agreed to pay a little over $2 million. The settlement includes AT&T subsidiary Cricket Wireless and Verizon subsidiary TracFone.
The settlement involves 49 of the 50 US states (Florida did not participate) and the District of Columbia. The states' investigation found that the three major carriers "made several misleading claims in their advertising, including misrepresenting 'unlimited' data plans that were actually limited, offering 'free' phones that came at a cost, and making false promises about switching to different wireless carrier plans."
"AT&T, Verizon, and T-Mobile lied to millions of consumers, making false promises of free phones and 'unlimited' data plans that were simply untrue," James said. "Big companies are not excused from following the law and cannot trick consumers into paying for services they will never receive."
Whether they are actually "without any guilt" is a question I will leave to you, but a substantial element is a concession made by the companies to abide by a set of "restrictions"... but only for the next five years...
what restrictions...? Take look [all underlining is mine]:
- "Unlimited" mobile data plans can only be marketed if there are no limits on the quantity of data allowed during a billing cycle.
- Offers to pay for consumers to switch to a different wireless carrier must clearly disclose how much a consumer will be paid, how consumers will be paid, when consumers can expect payment, and any additional requirements consumers have to meet to get paid.
- Offers of "free" wireless devices or services must clearly state everything a consumer must do to receive the "free" devices or services.
- Offers to lease wireless devices must clearly state that the consumer will be entering into a lease agreement.
- All "savings" claims must have a reasonable basis. If a wireless carrier claims that consumers will save using its services compared to another wireless carrier, the claim must be based on similar goods or services or differences must be clearly explained to the consumer.
So get ready for 2029... when they presumably will resume their "normal" advertising practices.
It's like our regulators and their legal world have no problem eviscerating justice in deference to Big Commerce... I'm not exactly surprised though.
