In 2024, Verizon Wireless resolved a class-action lawsuit with a $100 million settlement. The lawsuit accused Verizon of deceptive advertising practices, specifically failing to disclose additional fees, such as administrative charges, that made the actual costs of plans higher than advertised. This misled customers into selecting plans under the impression that they were cheaper than they actually were.
Allegations Against Verizon
This Article Includes
The plaintiffs argued that Verizon’s omission of these fees violated consumer protection laws, including the Federal Trade Commission Act, which prohibits deceptive or misleading advertising. By excluding the administrative charges from its advertised prices, Verizon made its plans appear more affordable, a practice deemed misleading by the courts.
Verizon Class-Action Settlement Details
Compensation Breakdown
Verizon agreed to create a $100 million settlement fund to compensate eligible customers who were charged the disputed administrative fees. The settlement payments are structured as follows:
- Base Payment: All valid claims will receive a flat payment of $15.
- Monthly Service Bonus: Customers will receive an additional $1 for each month they were charged the disputed fees, up to a maximum of $85.
- Maximum Payout: Total compensation is capped at $100 per claimant, depending on the number of valid claims and the duration of the fees.
Eligibility Criteria
To qualify for a settlement payout, customers must meet these requirements:
- Be a Verizon customer with a postpaid wireless or data plan anytime between January 1, 2016, and November 8, 2023.
- Have been charged the administrative or telecom recovery fees during this period.
Settlement Payout Timeline
After the settlement became effective on September 20, 2024, the distribution process was set in motion. Eligible claimants will receive payments through checks or electronic transfers.
Important Notes on Distribution
- Unclaimed Payments: Any settlement checks that remain uncashed or undeliverable will be classified as unclaimed property and returned to the respective Settlement Class Member under state regulations. Administrative costs for processing these funds will be deducted proportionately.
- Estimated Payment Timeline: Distribution of settlement payments is expected to begin in early January 2025.
Claim Process (Now Closed)
While the claim-filing deadline has passed, the process was as follows for eligible customers:
- Access the official settlement website to confirm eligibility and download the claim form.
- Fill out the form, providing personal details and account information.
- Submit supporting documents, such as billing statements or receipts showing the disputed fees.
- Send the completed form either online or by mail before the deadline.
Claimants who successfully submitted their forms received confirmation and further updates. However, those who missed the deadline will not receive compensation.
Additional Resources
Customers interested in discussing their experiences with the settlement can explore Reddit threads where other members share insights about the claims process.
Final Note
This settlement underscores the importance of transparency in advertising. Customers can always scrutinize billing details and report discrepancies to ensure fair treatment under consumer protection laws.
