LANSING Verizon Wireless, Cingular Wireless and Sprint PCS have been cited for misleading advertisements and unclear disclosures in a 32-state consumer protection settlement announced Thursday by Michigan Attorney General Mike Cox.
Pursuant to the agreement, all three are required to provide accurate service coverage maps, give consumers at least two weeks to terminate service contracts without penalty and alter the way they market their wireless phone services and coverage.
“It’s important for Michigan consumers to be able to comparison shop for good deals and make informed decisions when purchasing services,” Cox said. “Under this settlement, these companies have taken steps that will give new cell phone customers easy to understand information about cellular plans and allow them to cancel their contract without paying hefty early termination fees.”
Wireless carriers previously provided rate maps to consumers that depicted calling areas across the United States, indicating where rates were available. In fact, those maps were not always accurate, and coverage was not necessarily available in the entire calling area. The three companies will now provide maps that are as accurate as possible under current technology.
Also, the carriers have agreed to give new customers 14 days to try out their wireless service to ensure service is available in the area of their choosing. During the return period, new customers may terminate their contracts for any reason without paying the early termination fee provided for in the contract. In addition, new customers can cancel their service contracts for any reason within three days without paying an early termination fee. The carrier will also return any activation fee the consumer may have paid upon signing up for the service.
Other provisions of the agreement call for disclosures in advertisements and retail, Internet and telemarketing sales channels which are designed to provide consumers with comprehensive information about the costs and limits of their wireless service.
The states entering into the settlement with the carriers are Michigan, Alabama, Arkansas, Colorado, Delaware, Georgia, Hawaii, Idaho, Illinois, Iowa, Kansas, Maine, Maryland, Massachusetts, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Tennessee, Texas, Virginia, Wisconsin and Wyoming.
