NEWARK
– The Office of the Attorney General
through its Division of Consumer Affairs has
filed suit against Verizon New Jersey, Inc.
(“Verizon”), alleging that its
marketing, sales, billing and customer service
practices for its FiOS television, telephone
and internet services are deceptive and misleading.
The
state alleges that Verizon failed to provide
advertised promotional gifts such as flat-screen
televisions when consumers signed up for FiOS
service. The State also alleges that Verizon
charged consumers higher prices for service
than prices quoted in door-to-door solicitations
and advertisements and also charged activation
fees after consumers were told that such would
be waived.
“FiOS
is touted for its clearer picture but Verizon
obscured the truth from potential customers
in its advertising and sales pitches,”
Attorney General Anne Milgram said. “Deception
and misrepresentations have no place in the
marketplace and we will hold businesses accountable
when they violate the public’s trust.”
In
its four-count complaint filed in State Superior
Court in Essex County, the state alleges that
Verizon violated the Consumer Fraud Act through
unconscionable commercial practices, misrepresentations
and knowing omissions of material facts, as
well as the Advertising Regulations.
The
state specifically alleges that Verizon engaged
in the following conduct:
-
Quoting one price for FiOS Service in door-to-door
solicitations, direct mail advertising and
otherwise, then billed consumers at a higher
price;
-
Charging consumers an activation fee, after
the salesperson in the door-to-door solicitation
waived the fee;
-
Charging consumers for services, such as
movie packages, that were never ordered;
-
Representing that movie packages were free,
then billing consumers for such services;
-
Advertising promotional gifts, yet failing
to provide consumers with the opportunity
to contract for the types of FiOS service
necessary to obtain the promotional gifts;
-
Using the term “additional charges
apply” in advertisements, without
providing a description of those charges;
-
Failing to provide consumers with the rewards
letter or other instructions necessary to
receive their promotional gifts;
-
Failing to provide consumers with a copy
of their signed contract;
-
Representing that consumers are entitled
to receive promotional gifts, but failing
to provide promotional gifts;
-
Providing consumers with promotional gifts
only after significant delay and/or after
consumers made repeated calls or other contacts
with Verizon;
-
Billing consumers at a price other than
that initially quoted;
-
Billing, on a monthly basis, inconsistent
amounts to the same consumers with the same
services;
-
Failing to honor a consumer’s request
to cancel the FiOS service; and
-
Making it very difficult (i.e. long delays,
varied telephone numbers) for consumers
to reach a customer service representative
in order to address or resolve issues as
to promotional gifts, services and/or billing.
“Verizon
conducted a very aggressive marketing campaign
to introduce its FiOS service, which included
promotional gifts that were never to be provided”
said David Szuchman, Consumer Affairs Director.
“We will seek to ensure that Verizon
complies with all relevant laws when advertising
and selling services and products.”
To
date, the Division has received 266 consumer
complaints related to FiOS marketing and sales.
A FiOS complaint form and survey can be filled
out on the Division’s web site at njconsumeraffairs.gov/fios.htm
. Consumers also can file complaints with
the Division by calling 1-800-242-5846
(within N.J.) or 973-504-6200.
Each
violation of the state’s Consumer Fraud
Act carries a civil penalty of up to $10,000
and up to $20,000 for each subsequent violation.
Deputy
Attorney General Alina Wells of the Consumer
Fraud Prosecution Section is representing
the state in this action.
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