Verizon to pay Maryland consumers nearly $1.4M after being accused of misrepresenting FiOS prices

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Verizon will pay restitution to current and former FiOS customers in Maryland after the state accused it of misrepresenting pricing and services.

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James Briggs

Deputy Managing Editor- Baltimore Business Journal

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Verizon has agreed to pay an estimated $1.37 million to Maryland consumers after Attorney General Douglas Gansler's Consumer Protection Division accused the telecommunications giant of misrepresenting the price of its FiOs television, phone and Internet bundles.

Verizon also will pay a $250,000 fine and $75,000 in other costs to the state and change its advertising for FiOS to reflect more detailed pricing information.

A state investigation found Verizon failed to deliver promotional items that had been promised to new FiOS customers, including TVs and gift cards; didn't disclose the cost of leasing equipment as a part of FiOS service; and charged termination fees to customers who canceled after complaining they didn't receive the services and pricing they expected.

The state also has received complaints about Verizon's billing and customer service, according to a statement issued by Gansler's office.

"Verizon's activities when it was rolling out FiOS established it as one of our office's biggest complaint generators," Gansler said in the statement. "I'm pleased that Verizon is changing its marketing practices to accurately reflect the total cost of its services and that a significant number of consumers will receive restitution as a result of this agreement."

Verizon will pay current customers directly and the state will notify former customers that they are eligible for restitution.