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Published on June 21, 2024
Texas Attorney General Secures $10.22 Million Settlement with Major Wireless Carriers Over Deceptive Marketing ClaimsSource: Attor­ney Gen­er­al Ken Pax­ton

In a sweeping legal move, Texas Attorney General Ken Paxton has announced a significant settlement with some of the nation's largest wireless service providers. The $10.22 million accord involves AT&T Mobility, LLC, Cricket Wireless, LLC, T-Mobile USA, Inc., Verizon Wireless, operating as Cellco Partnership, and TracFone Wireless, Inc. The settlement, announced yesterday, resolves investigations by state attorneys general into misleading and deceptive marketing tactics used by these telecom giants.

Investigations uncovered misleading practices including "unlimited" data promos with undisclosed limits, "free" phone offers with strings attached, obscured conditions for network-switching incentives, and distorted wireless plan comparisons. As detailed on the Texas Attorney General's website, the investigation revealed companies were not entirely transparent about such offers.

The newly reached settlement requires that these companies halt any deceptive marketing strategies, making a shift to more transparent and honest advertising. This entails clearly and conspicuously disclosing any conditions or limitations associated with their services and promotions. According to Attorney General Paxton, "Businesses cannot lure consumers into deceptive deals through misleading marketing schemes." He asserts in his statement that the obligations of this settlement will enforce a more straightforward approach in the industry.

Out of the total settlement, the State of Texas will pocket $1,152,078.23 to cover attorneys' fees and costs resulting from the case. Paxton's office has expressed its commitment to holding companies accountable for deceitful practices, emphasizing that these settlements are a step towards fairer consumer transactions within the state. In an era where digital connection is vital, transparency in how these services are offered and sold is paramount.

Consumers looking for details about the settlements can review the agreements through the provided links on the Texas Attorney General's website for AT&T and Cricket Wireless, as well as those for T-Mobile, Verizon, and TracFone. These documents provide an insight into the commitments made by the companies to ensure future advertising is clear, accurate, and does not misguide consumers.