Verizon Class Action Alleges FiOS Deceptively Markets Set-Top Boxes

A putative class action lawsuit alleges that Verizon companies in Pennsylvania violated consumer protection laws by deceptively marketing its set-top boxes as required to connect televisions to Verizon’s FiOS broadband cable service.

In particular, the complaint asserts that Verizon requires a set-top box for each television connected to FiOS, when actually multiple set-top boxes are not technologically necessary.

“In reality, there are numerous legitimate alternatives that permit customers to fully access and enjoy FiOS on multiple televisions without an equal number of Verizon’s devices,” the class action contends.

Since each set-top box requires a separate monthly fee, the complaint alleges that, “That exclusive leasing scheme is nothing more than a thinly veiled mechanism enabling Verizon to secure additional, supracompetitive profits.”

The Verizon FiOS set-top box deceptive marketing class action lawsuit states that Verizon is a leading provider of television programming in the U.S., with over 31 million customers.

Verizon markets its FiOS cable broadband and its “Quantum” online features to customers across 88 percent of Pennsylvania.

In addition to paying for the broadband cable service, Verizon FiOS and Quantum customers must lease a set-top box that costs between $9.99 and $12.99 per month.

According to the complaint, the Verizon website requires leasing a set-top box for each television and Verizon employees are trained to tell customers that each television must have a set-top box for each television connected to the FiOS service.

However, numerous other means exist for customers to connect televisions to the network, the class action asserts. For example, digital media streaming devices—like those from Google, Roku, Amazon, or even appropriately equipped laptops—can be connected directly to televisions.

In addition, “smart” televisions have their own wireless capabilities that can be used to connect to Verizon’s Quantum service.

Separately, the complaint also argues that Verizon does not allow customers to purchase the set-top boxes, the same way it allows the purchase of its internet routers.

Plaintiff Christopher Kelly states that he is a resident of Philadelphia and has been a Verizon Quantum customer since August of 2014. He has been leasing two set-top boxes from Verizon the entire time, at a monthly cost of $19.98, according to the complaint.

In total, Kelly claims that he has paid Verizon over $450 for leasing those two set-top boxes. The class action alleges that Kelly did not need to lease both set-top boxes these two years, but that he was a victim of Verizon’s deceptive conduct.

The deceptive marketing lawsuit requests certification of a Class of “[a]ll Pennsylvania residents who are current or former customers of Defendant Verizon, who purchased FiOS with Quantum, and who have paid rental charges for the use of more than one so-called ‘set-top’ box to Defendant Verizon at any time from September 2011 to the present.”

The class action seeks restitution and damages for potential Class Members, including treble damages under Pennsylvania consumer protection statutes.

Kelly is represented by Sol H. Weiss, David S. Senoff, and Clayton P. Flaherty of Anapol Weiss.

The Verizon FiOS Set-Top Box Deceptive Marketing Class Action Lawsuit is Christopher Kelly v. Verizon Pennsylvania LLC, et al., Case No. 2:16-cv-05672, in the U.S. District Court for the Eastern District of Pennsylvania.