In 2024, Verizon Wireless reached a settlement of $100 million in a class-action lawsuit alleging deceptive advertising practices. The lawsuit accused Verizon of failing to disclose additional fees, such as administrative charges, resulting in higher-than-advertised costs for their plans.
The plaintiffs argued that Verizon’s omission of these fees initially made their plans appear more affordable than they were, misleading customers into selecting plans that ended up costing more than expected. This practice was deemed deceptive because the advertised prices did not reflect the full cost customers would incur. The lawsuit likely invoked consumer protection laws and advertising regulations, such as the Federal Trade Commission Act, which prohibits misleading or deceptive advertising.
Settlement Details
Settlement Fund Distribution
Verizon has committed to distributing a $100 million settlement fund to eligible customers. The compensation structure is as follows:
- Base Payment: Each valid claim will receive a flat payment of $15.
- Monthly Service Bonus: Eligible customers will receive an additional $1 for each month they were charged the disputed administrative fee, up to a maximum of $85.
The total compensation per customer is capped at $100. The final amount received will be determined by the number of valid claims and the duration for which the administrative fees were charged.
Eligibility Criteria
To qualify for the settlement, customers must have had a postpaid wireless or data plan with Verizon from January 1, 2016, to November 8, 2023. Additionally, they must have been charged the contested administrative or telecom recovery fees during this period.
Claim Submission Process
Unfortunately, the deadline for submitting claims has passed. For those who were eligible and intended to file a claim, the process involved the following steps:
- Visit the Settlement Website: Access the official settlement website to verify eligibility and download the claim form.
- Download or Request a Claim Form: Obtain the form from the website or request it from the settlement administrator.
- Complete the Form: Provide required details such as name, contact information, and account specifics.
- Attach Required Documentation: Include supporting documents, such as billing statements or receipts, to verify the charges.
- Submit the Form: Send the completed form by mail or submit it online through the settlement website before the deadline.
After submission, claimants would have received confirmation and further instructions. It is essential to stay informed about the settlement progress and any additional steps required.
Since the claim submission period has ended, those who did not file a claim will not receive compensation, even if they were eligible. Eligibility alone does not ensure compensation without the completed paperwork.
Verizon will announce the payment distribution date soon and will provide additional details and instructions regarding the disbursement of funds in the coming weeks.
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