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NJ Announce Settlement with Verizon Over Fios Marketing Practices
Verizon agrees to $175,000 settlement with New Jersey to resolve allegations of misleading marketing and sales practices for its Fios services.
Attorney General Matthew J. Platkin and the Division of Consumer Affairs announced a settlement agreement with Verizon New Jersey, Inc. to address allegations that the company violated New Jersey's consumer protection laws in its marketing and sale of Fios services.
Settlement Details
Under the terms of the settlement, Verizon will pay $175,000 to the State to resolve claims that the company engaged in several unlawful business practices, including:
- Charging consumers more than the advertised prices for services.
- Failing to honor cancellation requests in a timely manner.
- Not providing entitled refunds to consumers.
- Automatically renewing contracts without consumer consent.
- Failing to deliver advertised promotional gifts.
- Not clearly disclosing the limited supply of promotional gifts.
Background of the Investigation
The Division of Consumer Affairs initiated the investigation into Verizon, headquartered in Basking Ridge, after receiving numerous complaints from New Jersey consumers about the company's business practices.
The State's allegations against Verizon included:
- Charging higher prices than advertised.
- Delaying or neglecting to process legitimate cancellation requests.
- Not issuing refunds that consumers were entitled to receive.
- Renewing contracts without obtaining explicit consent from consumers.
- Promising but not delivering promotional gifts.
- Failing to inform consumers about the limited availability of promotional gifts clearly.
Response and Reminder
Verizon has denied the allegations but has agreed to the settlement to resolve the matter. The Division of Consumer Affairs advises consumers to thoroughly read contracts and disclosures before agreeing to promotional offers.
Investigation and Legal Representation
The investigation was conducted by Michelle Davis of the Office of Consumer Protection within the Division of Consumer Affairs. Deputy Attorney General Jeffrey Koziar, supervised by Section Chief Jesse J. Sierant of the Consumer Fraud Prosecution Section within the Affirmative Civil Enforcement Practice Group of the Division of Law, represented the State in this investigation and settlement.
