Arkansas, along with 49 other states, has called out AT&T (NYSE: T) and subsidiary Cricket Wireless, T-Mobile USA (NASDAQ: TMUS), Verizon Wireless (NYSE: VZ), and subsidiary TracFone Wireless for advertisements that it says are deceptive to the general public. The lawsuit against the wireless carriers, filed by all 50 state Attorney Generals, resulted in a $10 million settlement to be distributed amongst the states. According to KATV-News, Arkansas will receive $104,246 of the payout.
“Cell phones are important to the daily lives of Arkansans, and it is imperative that wireless companies are straightforward and honest in their advertising practices. Consumer protection is a core mission of my office, and it remains one of my top priorities,” stated Arkansas Attorney General Tim Griffin. “I want to thank my Public Protection Division for its work on securing this settlement, especially Deputy Attorney General Chuck Harder and Assistant Attorney General Matthew Ford.”
The ruling determined that, moving forward, carriers must rely on advertising that is truthful and not misleading. The carriers will need to avoid terms like “unlimited” or “free,” which may not be clearly defined. Company representatives will need better training when discussing plans with customers. Additionally, guidelines for switching carriers, service agreements, and comparing service plans and potential savings must not involve hidden requirements or misleading language.
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