Some Verizon customers could receive a payout from the wireless giant in 2024.
Facing accusations of imposing undisclosed administrative fees in A combined lawsuit filed on November 10, Verizon agreed to a proposed $100 million settlement, New York Times reported.
The criticism stems from a California lawsuit filed in 2021 that accused Verizon of “explicitly advertising certain monthly rates for postpaid wireless services” before adding an “administrative fee” to customers’ bills.
Americans are spending now over $65 million in fees according to White House estimates. The Biden administration in October he called “all agencies to reduce or eliminate hidden fees, commissions and allowances for everything from banking services to cable TV and Internet bills to airline tickets and concert tickets.”
The settlement with Verizon was approved by a court in New Brunswick, New Jersey on December 15. On Wednesday, court-appointed legal advisers distributed advice via email and postcards to the claimants.
Verizon denies surprising customers with hidden fees. Rich Young, a company spokesman, said Verizon “clearly identifies and describes wireless customer administration fees multiple times during sales transactions, as well as in marketing activities, contracts and billing,” according to the NYT.
US-based Verizon customers who were charged disputed administrative fees between January 1, 2016 and November 8, 2023 have until April 15, 2024 to file a claim.
Depending on the variety of claimants and the duration of service, eligible customers could receive a refund of up to $100. Customers have been instructed to complete a form specifying their preferred approach to refund, which incorporates check, bank transfer or digital payment services.