Verizon Wireless Settles On Its Unlimited Data Plan Marketing; Pays $1 Million To Customers

It is a day of repentance for Verizon (NYSE: VZ) Wireless, it seems. First it withdrew the spectrum lawsuit against FCC, and now it has settled a probe into the marketing of its mobile data usage plans and reimburse $1 million to customers for wrongful account termination, the New York attorney general said today. VZW had marketed its NationalAccess and BroadbandAccess plans as “unlimited,” without disclosing that actions such as downloading movies or playing games online were prohibited, and also cut off heavy Internet users for exceeding an undisclosed cap of usage per month, reports Reuters. The plans only permitted limited activities such as web browsing, e-mail and intranet access, and “customers who used their plans for common activities such as downloading movies and video or even playing video games online, were unwittingly in violation of the terms and conditions of their service agreements,” said the AG’s office in a release.

From 2004 until April of this year, VZW terminated more than 13,000 consumers nationwide for “excessive” use of these plans, according to Attorney General Andrew Cuomo’s office. Now VZW has agreed to reimburse all terminated consumers for the cost of wireless access cards or cell phones purchased by the consumers.