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Update:
- Verizon Wireless asked a judge to force arbitration in a class action case alleging it advertises a flat-rate monthly plan but then jacks up that rate with hidden “administrative charges” at the end of the month.
- In a memo in support of a motion to compel arbitration filed by Verizon’s attorneys Nov. 18 in a New Jersey federal court, the wireless telecommunications provider argued that its customers agreed to an arbitration clause when purchasing cell phones and accepting Verizon’s customer agreement.
- By signing the document, Verizon claims customers gave up any right to bring a claim in court and said any dispute must be resolved through arbitration. It added that its customer agreement forbids collective action.
Verizon class action overview:
- Who: A group of Verizon Wireless consumers are suing the company.
- Why: They say Verizon advertises a flat-rate monthly wireless plan then tacks on hidden fees at the end of the month.
- Where: The Verizon class action lawsuit was filed in a New Jersey federal court.
(Sept. 21, 2022)
Verizon Wireless advertises a flat-rate monthly plan but deceives customers by then jacking up that rate with hidden “administrative charges” at the end of the month, a new class action lawsuit alleges.
The plaintiffs, who are 26 Verizon Wireless customers, filed the class action lawsuit against Verizon Wireless and Verizon Communications Inc. Sept. 20 in a New Jersey federal court, alleging violations of state and federal consumer laws.
According to the lawsuit, Verizon’s sign-up policies and practices deceive customers by prominently advertising certain flat monthly rates for Verizon postpaid wireless service plans.
After customers sign up, however, Verizon allegedly charges them higher monthly rates than it advertises and promises by padding customers’ bills each month with what is called an “Administrative Charge”—currently $3.30 per month for each line.
Verizon class action claims hidden rates increase over time
According to the Verizon class action, the “administrative charge” is a fictitious construct that enables Verizon to unlawfully charge its customers more per month for wireless services without having to advertise the higher monthly rates.
The plaintiffs say the company first began “sneaking” the charge into all of its postpaid wireless customers’ bills in 2005, initially at a rate of $0.40 per month for each phone line on its customers’ service plans.
“Since then, Verizon has repeatedly increased the amount of the Administrative Charge on a regular basis,” they say.
The current amount of the administrative charge is $3.30 per line per month—more than eight-times the original amount of the charge, the Verizon class action alleges.
“Verizon has used the Administrative Charge as a revenue lever to covertly jack up its monthly service prices and to squeeze its existing subscribers for more cash whenever Verizon desires,” the lawsuit states. “To date, Verizon has improperly collected billions of dollars in additional, unlawful charges from the proposed Class members through its Administrative Charge scheme.”
As a result, the plaintiffs ask the court to stop Verizon from continuing the charge and to declare that the conduct is illegal, plus damages, fees, costs and a jury trial.
They’re suing for unjust enrichment, breach of fair dealing and violation of state consumer laws in New York, Washington, Oregon, New Mexico, Hawaii and Florida. They’re looking to represent classes of consumers from those states who had the charge applied to their flat-rate plans.
Meanwhile, a number of class action lawsuits involving T-Mobile and Verizon have been filed, litigated or settled recently over allegations revolving around their accessibility, billing and service. Click here for more on these lawsuits.
Were you impacted by a Verizon plan rate change? Let us know your experience in the comments!
The plaintiffs are represented by Stephen P. DeNittis, Joseph A. Osefchen and Shane T. Prince of DeNittis Osefchen Prince PC, Daniel M. Hattis and Paul Karl Lukacs of Hattis & Lukacs; and Michael E. Criden and Lindsey C. Grossman of Criden & Love PA.
The Verizon class action lawsuit is Corsi et al. v. Cellco Partnership et al., Case No. 3:22-cv-04621, in the U.S. District Court for the District of New Jersey.
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1,157 thoughts onVerizon seeks arbitration in alleged deceptive plan rate class action
I disputed charges with Verizon and now it’s on my credit report because I refused to pay.
I am a verizon customer and just wanted to know if I take part in this law suit
I too have been a verizon customer fir years. I remember the 40 cents charge, and the increase for changes. Tell me what to do, as i have not received an email from verizon yet. The email will contain a claim number.
I have been a long-time verizon customer. How do I get a refund for all the hidden charges and lack of providing rebates for returning used equipment?