T-Mobile, AT&T, & Verizon Fined $10.2M for ‘Unlimited’ Claims

T-Mobile, AT&T, and Verizon have all been slapped with fines totaling a staggering $10.2 million over false claims of unlimited phone plans and so-called “free phones.”

PC Magazine reported that a coalition of 50 attorneys general — including New York Attorney General Letitia James, who led the charge for the fines — announced the deal last week.

“New Yorkers, and all Americans, deserve to know that when they buy a service or product, they will be treated fairly and can trust what the seller is saying,” James said in a statement to the outlet. “AT&T, Verizon, and T-Mobile lied to millions of consumers, making false promises of free phones and ‘unlimited’ data plans that were simply untrue.”

She continued: “Big companies are not excused from following the law and cannot trick consumers into paying for services they will never receive. We will continue to go after companies that hurt everyday Americans and try to take advantage of this basic and critical service.”  

The investigation conducted by the attorneys general found that AT&T, Verizon, and T-Mobile made “several misleading claims,” which prompted the issuance of the fines. The companies claimed plans were “unlimited” when there were limits, that phones were announced as “free” when there was a cost, and that false promises were made about switching phone plans.

In addition to paying the $10.2 million fine, the companies have agreed that all future advertisements must be “truthful, accurate, and non-misleading” and that plans can only be announced as “unlimited” if the data in a billing cycle has no limits.

AT&T, Verizon, and T-Mobile must also appoint an employee to work with the attorneys general to address the complaints filed by consumers and to work with their customer service representatives to ensure compliance with the new standards.

News of these fines comes amid Q1 2024 reports from T-Mobile that suggest the company only saw “average” profits, so these fines could cut into them. AT&T, meanwhile, has had a rough Q1 2024, with a February report revealing that the company had to pay out its customers for a network outage. And in January, a class action settlement was announced against Verizon for unfair “administrative charges” imposed on customers.