The Hawaii State Department of Commerce and Consumer Affairs Office of Consumer Protection announces that the 50-jurisdiction settlement worth $10.25 million resolves the general investigations into the Wireless Carrier providers’ deceptive and misleading advertising practices.
The Wireless Carriers are AT&T, Cricket Wireless, T-Mobile, Cellco, Verizon Wireless and TracFone Wireless.
“This settlement holding wireless carriers accountable for misleading advertising sets a precedent for transparency and honesty in the industry,” said Mana Moriarty, executive director of the Hawai‘i Office of Consumer Protection.
“Moving forward, consumers can expect clear disclosures and truthful representations in advertisements and offers.”
Hawaii will receive $79,928.66 as part of the 50-jurisdiction settlements with the Wireless Carriers. These payments may be used for consumer protection enforcement and consumer education.
As explained in the announcement, there are four ways Wireless Carriers are misleading their customers:
(1) “unlimited” data advertisements, which failed to clearly and conspicuously disclose material limitations;
(2) “free” phone offers, which failed to clearly and conspicuously disclose material conditions;
(3) monetary incentives to “switch” wireless networks, which failed to clearly and conspicuously disclose how the monetary incentives would be provided; and
(4) wireless carrier plan comparisons, which failed to disclose material differences.
As part of the assurance terms, the settlement will require the Wireless Carriers to adhere to rules to ensure the safety and protection of consumers against misleading advertising.
These terms include referring to “unlimited” mobile data plans when there are no set numerical limits on the data plan, clearly stating the fees and amounts Wireless Carries will pay consumers for the “switch” carriers program, and training customer service representatives to implement and comply with the assurance terms of the settlement.
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