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NEWARK
– Verizon New Jersey, Inc. (“Verizon”)
has agreed to a settlement with the Office
of the Attorney General and the Division of
Consumer Affairs to resolve the lawsuit arising
from its marketing, sales, billing and customer
service practices for its FiOS television,
telephone and internet services.
Verizon has agreed to pay $795,000 to the
state in civil penalties and reimbursement
of attorneys’ fees and investigative
costs. In addition, Verizon will provide a
$50.00 prepaid gift card to the 1,160 consumers
who submitted complaints to the Division,
and if any consumers so opt, will terminate
their FiOS service without an early termination
fee.
Verizon
also has agreed to retain at its own expense
a Consumer Affairs Liaison who, for a one
(1) year period, will assess Verizon’s
compliance with the terms of the settlement
and submit quarterly reports to the state.
“Companies
must deliver services at the terms advertised
and represented to consumers. This settlement
demonstrates Verizon’s commitment to
do right by its customers and to adhere to
our consumer protection laws and regulations,”
Attorney General Anne Milgram said.
In
entering into the settlement, Verizon made
no admissions of liability or wrongdoing.
The
state filed suit against Verizon on March
16, 2009, alleging that the company violated
the Consumer Fraud Act and Advertising Regulations
in its advertisement, door-to-door solicitation
and sale of FiOS service. Among other things,
the state alleged that Verizon failed to provide
advertised promotional gifts such as flat-screen
televisions when consumers signed up for FiOS
service, and charged consumers higher prices
for service than prices quoted in door-to-door
solicitations and advertisements.
“Consumers
want crystal clear television when they sign
up for FiOS and they deserve a crystal clear
explanation of service terms and conditions,”
said David Szuchman, Consumer Affairs Director.
“This settlement ensures that consumers
will get what they are promised when signing
up for FiOS service.”
The
settlement is memorialized in a Final Consent
Judgment, in which Verizon agrees to:
- Ensure
that the inventory levels of FiOS promotional
gifts are reasonably sufficient to meet
consumer demand;
- Ensure
that consumers receive such promotional
gifts within the represented time period;
- Make
available an item of equal or greater monetary
value, if the promotional gift supply is
exhausted;
- Clearly
and conspicuously disclose in any advertisement
either the quantity of FiOS promotional
gifts available or use a phrase such as
“while supplies last” or “limited
availability”;
- Clearly
and conspicuously disclose any limiting
factors (i.e. time period) affecting a consumer’s
eligibility to obtain a FiOS promotional
gift, FiOS promotion and/or FiOS service
in its advertisements
- Determine
a consumer’s eligibility for any FiOS
promotion on the date of order, not the
date of installation, of the FiOS service;
- Equip
its ordering and billing systems to link
any FiOS promotion with specific eligibility
requirements so its sales representatives
know whether a consumer is eligible for
such FiOS promotion at the time of the order;
- Provide
consumers who are eligible for FiOS promotional
gifts with all necessary instructions and/or
paperwork to claim such items;
- Provide
consumers with written notification, via
email, letter or postcard, of the status
of any FiOS promotional gift for which they
have qualified within seven (7) days of
ordering or installing FiOS service, whichever
is earlier.
- Provide
a copy of the document to the consumer within
five business days after the consumer signs
any contract, order form or written commitment
for FiOS service.
- Not
quote one price for FiOS service through
advertisements, door-to-door sales or otherwise
and then bill consumers at a higher price;
- Not
charge consumers an activation fee, after
Verizon’s sales representative waived
such fee at the time of order, whether or
not through door-to-door sale;
- Enable
its ordering systems serving Verizon’s
customer service centers to display an estimated
first bill for FiOS service at the time
a consumer orders FiOS service;
- Review
the estimated first bill with the consumer
at the time of order and advise the consumer
of any estimated pro-rated amounts, one-time
and monthly charges, taxes and fees;
- Send
consumers who order FiOS service through
Verizon’s customer service centers,
a copy of the estimated first bill via email
or first-class mail within seven days of
ordering FiOS service; and
- Provide
a toll-free telephone number to address
consumer inquiries as to FiOS service, FiOS
promotions, FiOS promotional gifts, customer
service and assistance, billing and other
services.
Deputy
Attorneys General Alina Wells and Lorraine
K. Rak, Chief of the Consumer Fraud Prosecution
Section, represented the state in this settlement.
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