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Iowa Attorney General’s Offices Announces $10.25 Million Settlement With Wireless Carriers Over Misleading Advertising

Iowa Attorney General Brenna Bird announced Thursday a landmark $10.25 million settlement with major phone carriers, including AT&T, Cricket Wireless, T-Mobile, Cellco, Verizon Wireless, and TracFone. This settlement results from investigations by 47 attorney general offices, including Iowa, into deceptive advertising practices within the telecommunications industry. The investigations stemmed from consumer complaints alleging misleading advertising practices such as unclear limits on “unlimited” data plans, undisclosed conditions for “free” phone offers, misrepresented incentives for switching networks, and omitted differences in wireless carrier plan comparisons. The settlement mandates that carriers provide truthful and accurate advertising, clarify conditions for “free” offers, define “unlimited” data plans transparently, and assist with consumer complaints, among other provisions. Iowa’s share of the settlement, totaling $107,041, was determined by population. Bird says, “Phone companies have a duty to connect Iowans with the truth. This settlement will hold phone companies accountable and ensure Iowans have the information they need to pick the best phone plan for themselves and their families.” Links to the settlement agreements with the respective companies are included below.

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AT&T Mobility and Cricket Wireless settlement: Click HERE

T-Mobile USA settlement: Click HERE

Cellco, Verizon, and TracFone settlement: Click HERE

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