Ohio’s share nearly $500K in multistate settlements with wireless companies over deceptive ads

Credit: AP

Credit: AP

Three multistate settlements totaling $10.25 million were reached with the largest wireless carriers in US to resolve 50 attorneys general investigations into deceptive and misleading advertising practices.

Ohio will receive more than $478,000 under the agreements with AT&T Mobility together with Cricket Wireless; T-Mobile USA; and Verizon Wireless together with TracFone Wireless, Attorney General Dave Yost announced Thursday.

“In a time when we rely heavily on our phones to stay connected, it’s unacceptable to make false promises about what consumers might expect from their wireless carriers.” Yost said. “Ohioans deserve transparency and honesty from telecommunications companies, and this agreement ensures that they will receive just that.”

Key components of the settlements involve assurances that the wireless carriers will change their advertising and business practices to avoid vague “unlimited” data claims, unclear “free” cellphone offers and undisclosed conditions for monetary incentives for switching carriers, Yost said.

Under the agreements, the carriers must:

  • Make sure that all future ads are truthful, accurate and not misleading.
  • Clearly disclose restrictions on “unlimited” data plans.
  • Transparently disclose incentives for switching carriers.
  • Clearly disclose all material terms and conditions for consumers to receive “free” devices or services.
  • Explicitly state when an offer involves a lease agreement.
  • Justify claims of cost savings with clear comparisons.
  • Appoint a dedicated employee to handle consumer complaints from attorneys general offices.
  • Train customer service to comply with the terms of these agreements.

About the Author