According to NY Attorney General Andrew Cuomo, Verizon Wireless has agreed to reimburse $1 million to customers for wrongful account termination after falsely advertising their wireless plans as “unlimited,” when in fact the company sets limits and terminates the accounts of heavy users.

Cuomo’s investigation found that Verizon marketed the plans as “unlimited,” when in fact common uses such as downloading movies and playing games were prohibited.

Rather than offering unlimited internet service, Verizon abruptly cut off users who reached a undisclosed usage limit. These users were not able to use their accounts and were not offered refunds.

“This settlement sends a message to companies large and small answering the growing consumer demand for wireless services. When consumers are promised an ‘unlimited’ service, they do not expect the promise to be broken by hidden limitations,” said Attorney General Andrew Cuomo. “Consumers must be treated fairly and honestly. Delivering a product is simply not enough – the promises must be delivered as well.”

According to the AG’s office Verizon terminated over 13,000 customers nationwide for “excessive” use of its “unlimited” service.

Verizon has agreed to reimburse all users nationwide for the cost of their wireless cards and will pay $150,000 in fines to New York State. They also stated, “Verizon Wireless fully and voluntarily cooperated with the Office of the Attorney General throughout this inquiry. Since April of 2007, Verizon Wireless has voluntarily ceased cutting off customers based on their data usage and no longer prohibits common internet uses.”

VERIZON WIRELESS AGREES TO SETTLE DECEPTIVE MARKETING INVESTIGATION [NY AG](Thanks, Lisa!)
(Verizon Face By: chickee510)

Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.