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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
Charging all four of my lines the $3.30, I pay 350.00 a month.
After watching a video, I went and checked my Verizon account and found the $3.30 charge on each and every one of my lines. My bill is over $400/month for 8 lines, 1 in which is for my Apple watch. I have asked VZW customer service a few times if there is anything that can be done to lower my bill and the refer me to new options which always seem to equal the same as what I am currently paying.
C
Verizon customer for years with three lines. Add me pls.
Need to be included for added monthly deceptive charges found that I am now researching on billing
How can others join in on this class action lawsuit?
We have been charged aost 500 dollars for 2months of service Washington state
I need in on this over the past 12 years I’ve never had the same bill twice always up
10 lines on my verizon account. I want on this class action lawsuit!
I just joined Verizon, and they quoted my bill to be 124 each month, I have had to contact customer care 3 times in the first month as they keep changing my rate plan and putting my bill at 302.00 this cant be acceptable.
Ours is. $288. Joint. Acct , cohurt and myself 2020 ! Goes up ever month !!! FCC. DOES. Notta
We went with Verizon Wireless for a cell phone for my dad. BIG MISTAKE!!!!! WHY???? He was told that his bill would be $28/month, “for basic features!!!!” He was advised about this at a Walmart store….when we received the bill in the mail it was $37. The bill was being paid at a Verizon store. The next month it was $42,
at $42/month we called and requested that the phone be turned off!!!! They told us to go back to Walmart and have the service disconnected. We did, we were sent back to the Verizon store!!!! In January I had to pay $75 with my debit card to “turn the phone off”, but we were billed $80 the next month…. we went with another company. My father rarely uses his cell. We advised Verizon that we wanted the service terminated!!!! We thought that the phone was off!!! EVERY MONTH SINCE THEN ;WE HAVE BEEN GETTING A BILL….they threatened to take us to court if we did not pay the amount due!!!! WHY….WHEN THE PHONE HASN’T BEEN USED SINCE JANUARY!!!!! I have my bank records. THIS IS HOW THEY STAY IN BUSINESS: BY RIPPING PEOPLE OFF!!!!! VerizonWireless bad business 24/7/365.
I was charged monthly for hidden charges for a service did not request, need, nor have any capacity to use. They refuse to refund once I called to discuss this. The applied the service for a safe home for $70. a month over several months. I feel they do this because they have bullied everyone into paperless billing and automatic bill pay, so people are unaware and just pay their bill. automatically. I requested a copy of my bill every month for several months and finally received that, but not a penny back. they offered to pay me back in the billing process, I do not see how this can be rectified by them requiring I be their customer just to get my money they stole from me back. They took cash, I would like that back. It looks to me, when multiplied by millions of accounts, this action made them billions in revenue. And I have proof.
We took “advantage” of an iPhone upgrade in May, 2022. We taken advantage of. We traded in four iPhones, which had purchased outright from Apple, for four new iPhone 13s – one of those great deals. Verizon assessed the value of our trade ins at $500 per phone. The iPhone 13s were listed at $799.99. Common sense and simple math would state that the cost to us would be $300, spread over the 36 months of a “no contract contract” at least that’s what the Verizon store rep told us. Well we recently changed to Consumer Cellular only to have Verizon tell us we still owed $477 for each phone to terminate the “no contract contract.” The short of it is this – we were NEVER given the stated trade in value of $500 per phone and are, in reality, ending up paying the full $799 price for each phone. In other words Verizon took (stole) our phones and gave us no trade in value. Don’t bother reading any fine print of a “no contract contract” that doesn’t – if it exists it’s a lie.
This happened to me as well! Is there another suit for these deceptive practices?
Last month I paid almost over $500 and the month before that close to $600 and now this month $400. In three months I’ve paid $1500