Friday, October 26, 2007

Verizon Wireless agrees to settlement over marketing practices

State Attorney General Andrew Cuomo announced a settlement with Verizon Wireless Tuesday over what Cuomo called deceptive marketing practices for its unlimited Internet service.

Under the settlement, Verizon Wireless will pay $150,000 in penalties and costs to New York state and revise the marketing of its wireless Internet access plan. It will also pay an estimated $1 million in reimbursements to customers.

The company was accused of marketing its wireless Internet plan as unlimited, but then terminating accounts for excessive use. Restrictions on the plans were not clearly and conspicuously disclosed to consumers, according to Cuomo's office.

Verizon issued a state Tuesday saying that it cooperated with the attorney general's office and reached the agreement voluntarily.

"We are committed to providing clear advertising for our products and services, and we began updating advertising for our NationalAccess and BroadbandAccess data plans earlier this spring," the statement reads.

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