A recent Verizon unlimited data price increase lawsuit has been filed, alleging that the company has raised rates without customer notice or adequate notice. The company is accused of using a so-called Administrative Charge to raise rates despite falsely claiming that it is a reimbursement for government fees. While Verizon maintains that the charge is a flat rate, plaintiffs say the company sets it unilaterally. The company first added the Administrative Charge to monthly bills in 2005 and increased the cost to $1.95 in August 2020.
The price hike is a result of a Verizon policy change in which it allegedly collected more than $1 billion from its customers in California.
In addition, the class action lawsuit claims that Verizon violated the Consumers Legal Remedies Act, the False Advertising Law, and the Unfair Competition Law. The suit seeks injunctive relief and damages related to the “Administrative Charges.” While this may sound like a simple complaint, many people have already filed similar lawsuits against Verizon, which were also deemed unfair.
Despite this massive price hike, Verizon is still in the process of settling the case. Its lawyers are now seeking to transfer the lawsuit to federal court. If the case is dismissed, the company will have to pay the entire $1 million up front. However, it is important to note that there are some loopholes. As a result, the price increase is unlikely to affect the number of people who already use unlimited data.
One potential solution is to cancel the lines with unlimited data. However, this isn’t a good option because Verizon may charge up to $1 million for the service.
If this is the case, the company must set aside $400 million as indemnity. If it doesn’t do so, the lawsuit will be transferred to federal court. If the judge accepts it, the case could end up in a class action.
In the case of the Verizon lawsuit, the company claims that the administrative charge is a way to charge customers more money per month. Despite its name, this charge has already increased more than five times from its original amount. This new charge has allowed Verizon to profit greatly by adding the administrative fee to the consumer’s monthly bill. Moreover, the company refuses to disclose the administrative fee in its post-paid wireless advertisements.
The lawsuit claims that Verizon violated the terms of its unlimited data price increase agreement.
It is also seeking that the FCC enforce its net neutrality rules. In addition, the company must set aside $400 million to compensate users who have been charged by the new price increases. While the decision may be good for the consumers, it can be detrimental for businesses. The cost of accessing the Internet should never be an issue. It would help businesses and consumers alike if Verizon had abide by its obligations.
The lawsuit alleges that Verizon improperly collected $1 billion in additional charges from California subscribers and that this action violates the California law. The complaint seeks damages and injunctive relief under the Consumers Legal Remedies Act, False Advertising Law, and Unfair Competition Law. The case has also been filed in federal courts. It has been referred to as “Singel et al. v. Verizon, et al., and a class of others.”
Regardless of whether you think the Verizon unlimited data price increase lawsuit is legitimate, it has significant implications for consumers.
If you have been affected by the increase in prices, the lawsuit could help you get back the money you spent on Verizon. This lawsuit was filed in a federal court in New Jersey, where it was removed from a previous suit. It now involves Asurion and Verizon. The new ruling is the result of a class action, which means that it involves all three companies.
While it is unlikely that the lawsuit will result in damages, the class action suits filed by the Verizon Unlimited data price increase were a major setback for the subscribers. In the end, the lawsuit is likely to result in the company paying back customers $130 billion in extra charges, but that amount has not been determined. As the number of subscribers has grown, the cost of a single mobile device can exceed that of an unlimited data plan.
