Wow, big fine for someone with a market capitalization of almost $130B. If
I only got fined $0.47, I wouldn't be too deterred from doing it again (same
ratio of Verizon applied to the average person's income).
-----
Mike Hammett
Intelligent Computing Solutions
http://www.ics-il.com
----- Original Message -----
From: "Scottie Arnett" <[EMAIL PROTECTED]>
To: <[EMAIL PROTECTED]>
Cc: <wireless@wispa.org>
Sent: Wednesday, October 24, 2007 4:41 PM
Subject: [WISPA] FWD: NYS AG Cuomo settles with VZ Wirelss on
"unlimited"data
---------- Original Message ----------------------------------
From: d berns <[EMAIL PROTECTED]>
Reply-To: Telecom Regulation & the
Internet<[EMAIL PROTECTED]>
Date: Tue, 23 Oct 2007 21:57:57 -0400
http://www.oag.state.ny.us/press/2007/oct/oct23a_07.html
VERIZON WIRELESS AGREES TO SETTLE DECEPTIVE MARKETING INVESTIGATION
UNLIMITED INTERNET PLANS WERE ACTUALLY LIMITED
COMPANY AGREES TO CHANGE PRACTICES AND REIMBURSE CUSTOMERS
New York, NY (Oct 23, 2007) - Attorney General Andrew M. Cuomo today
announced that Verizon Wireless has agreed to halt the deceptive
marketing of its internet usage plans and reimburse $1 million to
customers for wrongful account termination nationwide.
The settlement follows a nine-month investigation into the marketing
of NationalAccess and BroadbandAccess plans for wireless access to the
internet for laptop computer users. Attorney General's investigation
found that Verizon Wireless prominently marketed these plans as
"'Unlimited," without disclosing that common usages such as
downloading movies or playing games online were prohibited. The
company also cut off heavy internet users for exceeding an undisclosed
cap of usage per month. As a result, customers misled by the company's
claims, enrolled in its Unlimited plans, only to have their accounts
abruptly terminated for excessive use, leaving them without internet
services and unable to obtain 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."
The Attorney General's investigation uncovered that while Verizon
Wireless prominently placed print, television and online
advertisements promising "UNLIMITED" NationalAccess and
BroadbandAccess for $59.99 per month:
* "Unlimited" plans had hidden restrictions. Verizon marketed its
NationalAccess and BroadbandAccess service plans to consumers
nationwide as "Unlimited" despite the plans' limitations. In fact,
the plans only permitted limited activities such as web browsing,
email and intranet access. Customers who used their plans for
common activities such as downloading movies and video or even
playing video games online, were unwittingly in violation of the
terms and conditions of their service agreements.
* "Excessive use" of Unlimited Plans resulted in abrupt
terminations. Verizon Wireless terminated heavy internet users
claiming that the high levels of usage could only have been
attained by activities, such as "streaming or downloading movies
and video" prohibited by the terms and conditions. These usage
restrictions were not clearly and conspicuously disclosed to
consumers and directly contradicted the promise of "unlimited"
service. Customers found their accounts abruptly terminated for
excessive use, leaving them without internet services and unable
to obtain refunds for their wireless access cards and cell phones.
From 2004 until April of this year, Verizon Wireless terminated over
13,000 consumers nationwide for "excessive" use of its "unlimited"
internet access plans. These customers were subsequently unable to use
their Verizon Wireless cell phones and modems to connect to the
internet.
Verizon Wireless has agreed to reimburse all terminated consumers for
the cost of wireless access cards or cell phones purchased by the
consumer in order to utilize Verizon Wireless's wireless internet
service. Verizon Wireless estimates the total amount of restitution to
be approximately $1 million nationwide. Verizon Wireless has also
agreed to pay penalties and costs of $150,000 to New York State and
revise the company's marketing of its wireless internet access plans.
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.
The case was handled by Justin Brookman, Chief of the Attorney
General's Internet Bureau, with assistance from Investigator
Vanessa Ip.
---
[This E-mail scanned for viruses by Declude Virus]
Dial-Up Internet service from Info-Ed, Inc. as low as $9.99/mth.
Check out www.info-ed.com for information.
--------------------------------------------------------------------------------
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** Join us at the WISPA Reception at 6:30 PM on October the 16th 2007 at ISPCON
**
** ISPCON Fall 2007 - October 16-18 - San Jose, CA www.ispcon.com **
** THE INTERNET INDUSTRY EVENT **
** FREE Exhibits and Events Pass available until August 31 **
** Use Customer Code WSEMF7 when you register online at
http://www.ispcon.com/register.php **
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