AT&T, Verizon, and T-Mobile are paying a $10 million settlement from 50 attorney generals' complaints of deceptive "unlimited" data plans and carrier switching incentives.
The New York Attorney General's office announced on Thursday the finalization of the settlement deal after a multistate investigation found the companies "deceptively marketing wireless service plans."
According to the findings, all three telecoms' "unlimited" data plans were "in fact limited and had reduced quality."
AT&T, Verizon, T-Mobile Now Required to Fully Disclose Data Plan Offers
The investigation also determined that the companies lied about the "free" phones and bonuses for switching wireless carrier plans, excluding key details on how to retrieve the offered products.
To prevent similar malpractices from happening, 50 general attorneys have started requiring the companies to disclose the full terms and conditions of the offer before receiving payment.
AT&T, Verizon, and T-Mobile maintained that the agreements "reflect no finding of improper conduct."
Part of the settlement payment is expected to be returned to the millions of customers AT&T, Verizon, and T-Mobile sold its misleading data plans.
A "dedicated representative" is already being required to handle all customer complaints and inquiries regarding the agreement and its possible compensations.
Also Read : FCC Imposes Nearly $200 Million Fine on AT&T, Sprint, T-Mobile, Verizon for Unlawfully Sharing Location Data
Federal Gov't Cracks Down on ISPs' Unfair Practices
The multistate investigation is only the latest move from the US government as it starts cracking down on unfair business practices many internet service providers have committed for many years.
Just a week earlier, the Federal Communication Commission fined AT&T, Verizon, and T-Mobile nearly $200 million for unlawfully sharing customer data locations with ad companies.
The "Big Three" carriers are also facing more regulatory scrutiny following the commission's decision to reinstate net neutrality rules, preventing ISPs and wireless carrier providers from bottling data speeds to promote their much more expensive connection plans.
These are in addition to the administration's move to remove "junk fees" from internet bills to ease Americans' monthly expenses.
Related Article : FCC Claims Net Neutrality is Back Following Vote to Regulate ISPs
