U.S. Verizon faced a class action lawsuit in a New Jersey courtroom in December.
The plaintiffs alleged that Verizon harmed wireless subscribers with a bogus scheme where extra charges were not properly disclosed. The telecom titan denies any wrongdoing but has agreed to the nine-figure payout. The lawsuit, which originated in New Jersey, where Verizon is headquartered, contends that U.S. Verizon customers with particular wireless service plans were charged higher monthly rates than advertised and promised by adding an "administrative charge" to their monthly bills.
A company spokesperson explained to CNN Business that the charge "helps our company recover certain regulatory compliance and network-related costs." In a statement, Verizon said that it "clearly identifies and describes its wireless consumer admin charge multiple times during the sales transaction, as well as in its marketing, contracts and billing."
Despite the $100 million settlement, Verizon continues to deny any misconduct and according to Forbes, has stated that it will continue to charge administrative fees in the future and that those fees may increase. Nonetheless, as part of the settlement, the company pledges to make fees more transparent to customers.
"Verizon clearly identifies and describes its wireless consumer Admin Charge multiple times during the sales transaction, as well as in its marketing, contracts, and billing," Verizon spokesperson Rich Young said in a statement to USA TODAY. "This charge helps our company recover certain regulatory compliance, and network-related costs."
Last October, after grabbing the attention of the Biden Administration, the Federal Trade Commission unveiled, according to the aforementioned CNN Business article, a proposed rule that would ban businesses from charging hidden or misleading fees and require companies to show full prices upfront.
A "fairness hearing" is scheduled for March.
Who Qualifies for the Verizon Settlement?
Current and former Verizon mobile customers in the United States (based on their last known billing address) who paid any administrative charge and/or "telco recovery charge" between January 1, 2016, and November 8, 2023, are included in the settlement class.
How Much Can You Get?
The Verizon class-action lawsuit payout will vary by customer depending on multiple factors, including how long you were/are a Verizon customer and the number of valid claims submitted.
According to the settlement, eligible parties may receive up to $100. Depending on court costs and the number of eligible claims, the final amount could be lower.
To apply, a special website has been launched to fill out a form with the required information. Customers who don't file a claim "will give up any right you may have to sue Verizon about the issues in this lawsuit," the website said.
The deadline to file electronically is April 15, 2023.
