Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
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.
Don’t Miss Out!
Check out our list of Class Action Lawsuits and Class Action Settlements you may qualify to join!
Read About More Class Action Lawsuits & Class Action Settlements:
- Advocacy group encourages FCC to support policies that prevent phone locking
- FCC to assess the geographic accuracy of Wireless Emergency Alerts during local tests
- Top mobile carriers including Verizon, AT&T, T-Mobile share data privacy practices
- AT&T class action claims T-Mobile falsely advertises that AT&T bans senior discount
1,157 thoughts onVerizon seeks arbitration in alleged deceptive plan rate class action
How do we join this class action suit?
I changed my service from sprint to Verizon. I told Verizon I wanted to pay the same amount as I paid to sprint. They agreed and I signed contract stating that monthly payment. Of course monthly payment invoice was more. Contacting a person in charge of my complaint was impossible. Never got an answer.
Long time Verizon customer bill definitely keeps getting higher
You just have to file a complaint through BBB and I promise Verizon will get back to you within 24 hours. Hopefully that helps. I’ve had to threaten them multiple times and finally they corrected my bill
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?
Added a line and it was supposed to be free, no I’m paying for the phone.
My bill goes up all the freaking time without warning. They are no help when you contact support about anything. Then you go and get your free upgrade and still pay to upgrade it’s just added to your bill.
Was a Verizon customer for years. Bills kept going up. Customer service stinks, they do nothing fir you
I got ripped off out of my family plan by verizon they are all a bunch of crooks with no feelings for their hard working customers
Verizon is the biggest bunch of crooks.
I was lied to and signed up for a free phone only to be told that They messed up and I now have to pay for the phone. Been a customer since it was Altell (2005) and have had endless problems with Verizon charging hidden fees and deceiving…. I have records to show it all. Would love to provide details
Verizon is a ripoff please add and contact me
scumbags did the same thing to me too!!!!!
In the past year and a half… since I’ve had the s22 ultra I calculated the other day because Verizon decided to stop my service when all I needed was a couple days for a check to come. The total for a year and a half came out to a whopping 5,343 dollars. that’s a lot of damn money from just me they made in a year and a half. They deserve to be screwed to a wall.
Add me