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U.S. Cellular Settles 'Free' Phone Complaint

Oregon challenges company's advertisements

May 30, 2008 

The state Department of Justice (DOJ) found that U.S. Cellular advertisements promised consumers "free" cellular phones without properly disclosing the prerequisite terms necessary, including the fact that consumers must first subscribe to certain and sometimes ancillary services and that consumers would be reimbursed for phone purchases through a rebate program.

Consumers also complained to DOJ that cellular phone "minutes" were routinely accumulated as users accessed neighboring U.S. Cellular cell towers for service, but not reported until the following month, misleading consumers into believing they had more "minutes" available to them than they actually had.

Through an Assurance of Voluntary Compliance (AVC) reached with U.S. Cellular the company and its subsidiary agree to disclose clearly the terms of "free" offers, including whether a service subscription is required, all aspects and details of any rebate program, whether additional purchases are necessary, and the existence and amounts of one-time fees.

"Consumers need to know exactly what they are getting into when they accept any type of product promotion," said Attorney General Hardy Myers. "Today's agreement ensures that cellular customers will clearly understand their rights as consumers and that these promotions are fair."

DOJ worked with law students participating in the Willamette Law Clinic in a joint effort that allows law students to learn firsthand the details of consumer protection law in Oregon under the direction of seasoned legal practitioners.

This settlement is the second in which Willamette Law Clinic students assisted DOJ in pursuing protections for consumers.

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