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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 have a contract with Verizon as my carrier. My agreement was $65.43 per month, which I balked at until I was told it was for unlimited data. OK, I wasn’t willing to go over $50.00/Mo. But $15.00 for unlimited data, is a good deal.
Well, my brand new Google $650.00 is slow as molasses.
My 8 year old Samsung Galaxy 5, was much faster connecting and loading.
This, I’ve been told, is the carrier and not the phone.
Verizon is intentionally slowing down the internet, of people who have unlimited data !!!??
I’ve questioned this with Verizon representative and was told that, Verizon, assumes that you have existing internet in your house, and you won’t be using your phone as your internet provider.
So, because Verizon, “assumed”, incorrectly, they decided to slow me down to curtail my usage!
Hopefully, I can be added to one of your Class Action Law Suits against them. (?)
In addition, my last bill was for $65.44, one cent higher than the previous months. Their explanation was that it was taxes. I haven’t even had a contract with Verizon for a year only 8 months and already they are increasing my bill!
I thought a contract spelled out the terms, which meant, that’s how much it would be, and not a penny higher.
This month a penny, next month a dollar and I have no recourse?
No, they shouldn’t receive a penny more when I have an agreed to contact and I shouldn’t be punished with slow internet and cut off, totally disconnected from everything because they made assumptions!
I’m a business owner and we have five phone lines it was $4000. I will not use that towards our phone they’re just taking $78 off her phone bill. They refuse to give me my credit on my earbuds and of a visa card I was supposed to get earbuds a credit card fighting with him ever since I open my business account with them. There’s extra charges put on my phone that they can’t even explain and when you talk to somebody it’s like I don’t get it I just don’t if there’s lawsuits out there for business accounts on Verizon
I feel I’ve been picked on and is paying more that I should, having a plan that required me to have a unlimited plan. Now that I’m grandfathered into this plan they want to take it away. I have an unlimited wifi hotspot. But beening charged a fee for it I don’t understand. Help me understand this, if u have a unlimited data. Why must ur wifi hotspot be limited?
A worker of a verizon store signed for me an agreement while i wasn’t in the store and i made a complaint and no one has called me back about this
Be aware of their so called trade in. They provide no disclosure to the trade in on your old device. I paid my phone in full two months after purchase, the total payoff quoted was a little over $800, I made. Down payment of $300. The total cost of the phone was $1100, so where is my so called $800 trade in? I switched providers and went from a $90. A month bill down to $35. A month with my senior discount. Verizon’s sales person in Mauldin SC advised me they offer senior discounts, however it’s on a lottery type system. I/e no guarantee that you will get a senior discount. I should have just walked out and purchased my new phone elsewhere. Looking at going to the local news about false advertising.
Please add me
I had 2 lines with Verizon one line in Virginia and one line in Georgia they were 2 Note 9
Account was created 25 January 2020
plese contact me kare625@outlook.com even veriozn employees verizon treats u guys like shit
im looking for witnesses against verizon weirless in a court i cant decide either to plea or go to trial
Verizon found same thing and even more to me. Fake iphone11 trade in to upgrade to iphone14. I paid diff in cash. Found out later he tied me to a three yr contract to finance iphone14, used electronic signature. Never presented a contract or receipt at store. Bill wayyy high, and I brought my own phone number over. Sold me a business line plan which only credits me on my iphone12 trade in. Used diff I paid in cash and applied it to accessories I did not know he was adding on. Totaled same amount I put up in cash when I thought I was buying iphone14 outright. He took my autopay check for edt monthly service if $45 a month. Now over $62 a month. He hides now. Found out all this from online cust service rep. Says I signed contract. Electronic without any disclosing of finance business line plan. I can return new iphone14, but they keepin my trade in iphone11 now. I end up w. I phone and s new bill for use of phone plan. They keepin my phone number too. All in their favor. Connected w cellular data Llc and cellular sales Llc, but not disclosed. They hurting me in every way possible. Bait n switch. No fixed bill. Adding on protection plan I declined. I’m a senior under dr care. This how they do me??? Had wrong address for billings. Don’t offer receipts, plan options, or promo deals contract terms. They jus put you in em. Their rep., an attorney does not care! I signed agreement she says. I signed for iPhone upgrade and cash w trade in iPhone. His contract is causing unfair enrichment all in their favor. Told dalemaen in this location only do bus sales promo financing deal, yet no disclosure they only do those. Consumer store is diff location they saying. Now. I’m on Medicaid. Can’t afford this. 67 yrs old and he was referred to me by my friend! A joke! He does not talk. Just does… assumes.. I in worse trouble than when I started looking for new service.
We can be a witness to any claim against Verizon. They do not want arbitrration from any third party.
I have have been wrongfully charged over $ 1000 by Verizon and experienced what your lawsuit claims first hand. I filed a complaint with better business bureau about them, and they pretended to be incredibly helpful while the bbb was involved but the second the complaint was closed They reneged on the agreements made. Instead of owing me $245 they charged me over $500 with no explanation and would not talk further with me about it. It’s not fair what they do to people… you rely on them for a cell phone and they know it and take advantage of you. If anyone has any ideas, how I can hold them accountable, please let me know. Thank you
My bill is $188 a month.i have been with Verizon since they started-im getting ripped off !!!