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Thursday, July 10, 2008
Verizon Settles ETF Suit For $21 Million

Verizon Wireless has settled a dispute over early termination fees for $21 million.

The carrier didn't admit to any wrongdoing but said that $21 million, which is the maximum amount it was liable for, will be doled out to plaintiffs and will cover attorney's fees. The settlement covers various lawsuits across the country over early termination fees, which are the fees customers incur when they break their wireless contract before it ends.

The FCC is considering a nationwide ETF policy for carriers. Verizon has advocated that the commission adopt rules that are similar to what the operator has in place. For example, carriers should offer opt-out or trial periods for new contracts; provide pro-rated ETFs; and offer no ETFs for contract renewals unless the consumer gets a new device as part of the deal.

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