Oregon awarded part of $10M settlement over 'deceptive' phone carrier ads
PORTLAND, Ore. (KOIN) – Oregon was awarded over $360,000 as part of a nationwide settlement with several phone companies for "deceptive and misleading" advertising practices, Oregon Attorney General Ellen Rosenblum announced Thursday.
The settlement -- totaling $10.25 million -- comes after attorneys general investigated the advertising practices of AT&T Mobility, LLC, Cricket Wireless, LLC, T-Mobile USA, Inc., Verizon Wireless, and TracFone Wireless, Inc.
“Mobile phones are a necessity of life, and Oregonians deserve to know exactly what they’re paying for when they purchase one,” said Attorney General Rosenblum. “Protecting consumers from false and misleading advertising is a cornerstone of our work, and this settlement is a great example of the power of working together across state and party lines,”
The settlement addresses misleading practices from the companies, including misrepresenting "'unlimited'" data in ads without disclosing limitations, ads for "'free'" phone offers, and monetary incentives to switch wireless networks without disclosing how the incentives would be provided, the attorney general's office said.
As part of the settlement, the carriers are now required to make ads that are “truthful, accurate and non-misleading,” and to only refer to “’unlimited’” data plans, only when plans do not have limits on the quantity of data allowed during a billing cycle and to disclose restrictions on data speed.
Additionally, the companies are required to offer to pay for customers to “’switch’” carriers only if they disclose the type of fees they will cover. The carriers must also disclose conditions customers must meet to receive services or devices that were advertised as free.