Golden State Today

California Attorney General Rob Bonta, in conjunction with a bipartisan, multistate coalition, has announced a $10.25 million settlement with major U.S wireless carriers following an industry-wide investigation into misleading advertising practices. The settlement, pending court approval, addresses allegations that the carriers violated the Unfair Competition Law and False Advertising Law through deceptive advertising.

The agreement mandates significant industry-wide changes and includes a payment of $10.25 million to the states, of which California will receive $1.2 million.

"We have all heard and seen advertisements announcing too good to be true cell phone deals, offering wireless devices for free or “unlimited” data. Turns out, many of those deals are indeed too good to be true,” said Attorney General Bonta. He added that the settlement requires changes to deceptive advertising practices that have become commonplace in cell phone marketing.

The settlement provides industry-wide injunctive relief addressing common misleading advertising practices committed by major wireless carriers. In addition to ensuring truthful and accurate advertising, the carriers must comply with specific requirements related to unlimited data claims, switch-and-save offers, discounted services claims, free or discounted device claims, device lease claims, employee training and complaint representatives.

Competition among wireless carriers has intensified over the years with increasingly aggressive advertising strategies. With more consumers relying on their mobile phones for internet access—particularly low-income consumers—the cost and quality of mobile phone plans is increasingly important.

Attorney General Bonta remains committed to investigating and remedying harm to consumers affected by unlawful and deceptive business practices.

Earlier this month, Bonta announced a $23 million settlement with Service Corporation International for engaging in false advertising and unlawful acts in its marketing and sale of pre-need cremation packages. He also submitted a comment letter supporting the Consumer Financial Protection Bureau’s proposed rule which would close a regulatory loophole allowing banks to charge overdraft fees without adequately disclosing basic credit terms.

In February, Bonta announced a settlement with two separate local Bakersfield landlords and their property management company for multiple violations of the Tenant Protection Act. In December, he submitted a comment letter to the FCC applauding its efforts to re-establish nationwide net neutrality rules and urging the FCC not to preempt California’s own net neutrality law.