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Verizon Agrees to Stop 'Unlimited' ClaimsSettlement with New York applies to wireless broadband customers nationwide |
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By Truman Lewis October 24, 2007
ConsumerAffairs.com reported in July 2006 that Verizon Wireless' definition of unlimited might not match consumers' expectations, after a staff member's account was canceled because he had watched what Verizon felt were too many baseball videos. Comcast had been the subject of similar consumer complaints lately. In August, we reported that Comcast had warned broadband Internet customers across the country to curb their downloading or wind up on the curb. The New York settlement follows a nine-month investigation into the marketing of NationalAccess and BroadbandAccess plans for wireless access to the internet for laptop computer users. Cuomo's investigation found that Verizon Wireless prominently marketed these plans as “’Unlimited,” without disclosing that common usages such as downloading movies or playing games online were prohibited. The company also cut off heavy internet users for exceeding an undisclosed cap of usage per month. As a result, customers misled by the company’s claims, enrolled in its Unlimited plans, only to have their accounts abruptly terminated for excessive use, leaving them without internet services and unable to obtain refunds. Sending a message
“Consumers must be treated fairly and honestly. Delivering a product is simply not enough – the promises must be delivered as well.” The investigation uncovered that while Verizon Wireless prominently placed print, television and online advertisements promising “UNLIMITED” NationalAccess and BroadbandAccess for $59.99 per month:
From 2004 until April of this year, Verizon Wireless terminated over 13,000 consumers nationwide for “excessive” use of its “unlimited” internet access plans. These customers were subsequently unable to use their Verizon Wireless cell phones and modems to connect to the internet. ReimbursementVerizon Wireless has agreed to reimburse all terminated consumers for the cost of wireless access cards or cell phones purchased by the consumer in order to utilize Verizon Wireless’s wireless internet service. Verizon Wireless estimates the total amount of restitution to be approximately $1 million nationwide. Verizon Wireless has also agreed to pay penalties and costs of $150,000 to New York State and revise the company’s marketing of its wireless internet access plans. Since April of 2007, Verizon Wireless says it has voluntarily ceased cutting off customers based on their data usage and no longer prohibits common internet uses. Report Your Experience
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