Verizon Wireless compensates customers for 'unlimited' usage cap fiasco
More than 13,000 former subscribers of Verizon Wireless' Internet service who found their accounts terminated due to alleged misuse, started receiving refunds for their equipment costs this week.
As first reported by BetaNews in October, the New York Attorney General's office went after the company over misleading advertising surrounding its NationalAccess and BroadbandAccess products.
For years in its advertising, VZW called its service "unlimited," although in reality it turned out not to be. From January 2002 through April 2007, the company had apparently been disconnecting 13,851 customers who had used more than five gigabytes per month, which was Verizon's actual limit for data per customer as stipulated in its customer terms of service.
This and other stipulations, such as bandwidth caps on high-throughput services such as gaming and streaming, were not printed in a location where the customer could easily locate, nor were they disclosed at the time of purchase, as was determined earlier this year by New York State Attorney General Andrew Cuomo.
When customers received the letters from VZW, they were often shocked to find that they had exceeded a bandwidth limit they didn't know even existed, and had been told there was no limit through Verizon Wireless' promises of unlimited data.
Once the user had been terminated, the card or device on which they used VZW's services was blacklisted. Thus, even though it would typically allow a customer to sign up for a new account, he or she would need to buy a completely new data card or device, incurring further charges.
Atty. Gen. Cuomo took issue with the company's practices, accusing them of violating New York laws surrounding advertising. Verizon Wireless agreed in October to reimburse customers for the price of the equipment that is now unusable.
It also agreed to remove all references to 'unlimited' in its advertising, and would clearly state any prohibitions from here on out. Additionally, all bandwidth caps would be also disclosed. The company was also fined $150,000, official documents indicated, and was required within 180 days to report on its compliance with the decision.
Text of Letter Sent To Customers
Regarding Refund on account [redacted] in the amount of [redacted]
Dear Current or Former Verizon Wireless NationalAccess or BroadbandAccess Customer,
You are receiving the attached check pursuant to an agreement between the New York Attorney General's Office (NYAGO) and Verizon Wireless, concerning Verizon Wireless' advertising of the NationalAccess or BroadbandAccess plans. The agreement provides relief for NationalAccess or BroadbandAccess customers who were terminated by Verizon Wireless for presumed prohibited usage between January 2002 and April 2007. A copy of the agreement ("Agreement") is available at www.dataplansettlement.com.
In accordance with the terms of the Agreement, Verizon Wireless has agreed to reimburse the actual purchase price you paid for your PC card, or 75% of the actual purchase price you paid for your modem-capable handset (e.g., smartphone or PDA) as reflected in company records or, if Verizon Wireless is unable to verify the purchase (e.g., equipment purchased through an agent), the average purchase price paid by terminated customers for their PC cards or modem-capable handsets.
You should cash the check within 180 days or it will be voided.
By endorsing the enclosed check, you waive and thereby release all rights and claims against Verizon Wireless alleging any improper marketing or advertising of Verizon Wireless' NationalAccess or BroadbandAccess plans.
If you have any questions regarding your refund or the Agreement, please contact Verizon Wireless via e-mail at [redacted]. Please make sure to include your name and account/mobile number in your e-mail.
Verizon Wireless