NJ, Verizon Reach Settlement Over Company's Marketing Practices

NEW JERSEY — Verizon and the state of New Jersey reached a $175,000 settlement this week, resolving an investigation into whether the company violated consumer protection laws concerning the marketing and sale of its Fios services.

According to New Jersey Attorney General Matthew Platkin, Verizon agreed to the settlement after state officials accused the company of failing to honor advertised prices for service.

Platkin also said the company "engaged in other unlawful business practices" by failing to deliver promotional gifts and provide promised refunds.

"When companies make promises to consumers, whether through advertisements, sales pitches, or other means, they are required by law to make good on those promises," Platkin said in a statement. "We will not allow companies to lure New Jersey consumers in with promotional pricing, gift incentives, or other enticements and then fail to deliver."

The New Jersey Division of Consumer Affairs opened an investigation into Verizon after receiving numerous complaints regarding the company’s business practices, Platkin said.

State officials also claimed Verizon:

• Charged consumers more for services than the advertised price.
• Failed to honor all cancellation requests that comply with Verizon’s cancellation policy in a timely manner.
• Failed to provide refunds to New Jersey consumers.
• Automatically renewed consumers’ contracts without their consent.
• Failed to give consumers advertised promotional gifts.
• Failed to clearly and conspicuously disclose the limited supply of advertised promotional gifts.

Verizon has denied the allegations, according to a statement obtained by the Bergen Record.

"This is a voluntary settlement intended to avoid litigation and without any finding of improper conduct," Verizon's statement said. "Our Fios Sales, advertising and provisioning practices are and will continue to be truthful, accurate and non-misleading."