Hobbit Business Review

Verizon Agreed to a $100 Million Settlement Over Allegations of Secret Fees — Here’s How to Get Paid

Key Takeaways

  • Verizon settled a class-action lawsuit alleging unfairly charged and insufficiently disclosed administrative fees for $100 million.

  • Eligible Verizon customers charged administrative fees between January 2016 and November 2023 may be entitled to payment.

Some Verizon customers might receive a payout from the wireless communications giant in 2024.

Facing accusations of imposing undisclosed administrative fees in a combined lawsuit filed on November 10, Verizon agreed to a proposed $100 million settlement, The New York Times reported.

The complaint originated from a California lawsuit filed in 2021, which accused Verizon of “prominently advertising certain monthly rates for postpaid wireless service plans” before tacking an “Administrative Charge” onto customers’ bills.

Americans are now spending more than $65 million on fees every year, according to the White House’s estimates. In October, the Biden Administration called on “all agencies to reduce or eliminate hidden fees, charges, and add-ons for everything from banking services to cable and internet bills to airline and concert tickets.”

The Verizon settlement was approved by the New Brunswick, New Jersey Court on December 15. On Wednesday, court-appointed legal counsels extended advisories via email and mailed postcards to parties eligible for the claim.

Verizon denies surprising customers with hidden fees. Rich Young, a spokesman for the company, said that Verizon “clearly identifies and describes its wireless consumer admin charge multiple times during the sales transaction, as well as in its marketing, contracts and billing,” per the NYT.

U.S.-based Verizon customers who were charged the disputed administrative fees between January 1, 2016, and November 8, 2023, have until April 15, 2024, to stake their claim.

Depending on the number of claimants and the duration of service used, eligible customers could see a reimbursement of up to $100. Customers have been instructed to fill out a form specifying their preferred reimbursement method, which includes check, bank transfer or digital payment services.

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