The State of Alabama was part of a recent 50-state lawsuit against several major telephone carriers accused of deceptive and misleading advertising.

According to Alabama Attorney General Steve Marshall the settlement from the lawsuit totaled $10.25 million. Alabama’s portion of the settlement will go towards attorneys’ fees and costs as part of the nationwide jurisdiction settlements with the Carriers.

“Phones have become an indispensable part of our day-to-day lives, so when a product is advertised to have unlimited data, or a free phone, consumer interest is understandable. However, businesses are obligated to clearly disclose limitations, additional fees, and conditions which is why this settlement was necessary,” said Marshall.

“Our 50-state coalition establishes a settlement that includes assurances that will greatly benefit consumers throughout the state.”

The companies allegedly advertised: “Unlimited” data advertisements that failed to clearly and conspicuously disclose material limitations, “free” phone offers that failed to clearly and conspicuously disclose material conditions, monetary incentives to “switch” wireless networks which failed to clearly and conspicuously disclose how the monetary incentives would be provided.

The terms of the settlement mandate that the companies must now:

• Make all future advertisements and representations truthful, accurate and non-misleading
• Refer in marketing to “unlimited” mobile data plans only where such plans do not set any numerical limits on the quantity of data allowed during a billing cycle and clearly and conspicuously disclose any restrictions on data speed, as well as the triggers of such restrictions
• Offer to pay for consumers to “switch” carriers only where they clearly and conspicuously disclose the type of fees and amounts that they will pay consumers, the form and schedule that such payment will take and all material requirements that consumers must satisfy in order to qualify and receive such payment
• Offer wireless devices or services for “free” or similar terms only where they disclose clearly and conspicuously all material terms and conditions that the consumer must meet in order to receive the “free” devices or services;
• Make offers to lease wireless devices only where it is made clear to the consumer that the consumer will be entering into a lease agreement;
• Make representations that a consumer will save money by purchasing its products or services only where it has a reasonable basis to do so based on comparisons with the prices of comparable goods or services of other providers, or where any material differences between those goods or services are clearly and conspicuously disclosed
• Appoint a dedicated employee to work with the attorneys general to address ordinary complaints filed by consumers;
• Train its customer service representatives who speak with consumers to comply with these terms and implement and enforce a program to ensure compliance with these terms.

Austen Shipley is a staff writer for Yellowhammer News. You can follow him on X @ShipleyAusten