Great Lakes Wire

Michigan Attorney General Dana Nessel has announced a $10.25 million settlement with AT&T Mobility, LLC, Cricket Wireless, LLC, T-Mobile USA, Inc., Cellco Partnership (doing business as Verizon Wireless), and TracFone Wireless, Inc. The settlement concludes investigations by state attorneys general into deceptive and misleading advertising practices by these wireless carriers.

The terms of the settlement address common misleading advertising practices of the carriers. These include misrepresentations concerning “unlimited” data advertisements that failed to clearly disclose material limitations; “free” phone offers that did not adequately disclose material conditions; monetary incentives to “switch” wireless networks without clear disclosure on how these incentives would be provided; and wireless carrier plan comparisons that failed to disclose material differences.

As part of the agreement, the wireless carriers will be required to ensure all future advertisements are truthful, accurate and non-misleading. They must also only refer to “unlimited” mobile data plans in marketing if such plans do not set any numerical limits on data during a billing cycle and clearly disclose any restrictions on data speed.

Other requirements include offering to pay for consumers to switch carriers only where they clearly disclose the type of fees and amounts they will pay consumers, along with other conditions; offering wireless devices or services for “free” only where they clearly disclose all material terms and conditions; making clear when offering to lease wireless devices that the consumer will be entering into a lease agreement; and having a reasonable basis for representations that a consumer will save money by purchasing its products or services.

“Michigan consumers have been misled by wireless companies’ deceptive offers of ‘free’ or ‘unlimited’ features in their plans,” said Nessel. “We depend on our cell phones too much to be tricked by such advertising practices. My Consumer Protection Team is committed to holding corporations accountable for their deceptive business practices and marketing that impedes informed shopping decisions by consumers. This settlement goes a long way toward achieving that goal.”

The State of Michigan will receive $214,655.86 in attorneys’ fees and costs as part of the 50-jurisdiction settlements with the wireless carriers.