Barber v. Cellco Partnership

Plaintiff Robert Barber filed a class action against Cellco Partnership (doing business as Verizon Wireless) in the U.S. District Court for the District of New Jersey on September 28, 2018. The lawsuit alleged that Verizon misleadingly advertised flat monthly rates for wireless service plans while charging customers additional, inadequately disclosed monthly “Administrative and Telco Recovery Charges.” Plaintiffs claimed these fees were essentially hidden price increases that violated state consumer protection laws and constituted breach of contract. The action was consolidated with similar suits, and after extensive litigation, the parties reached a settlement. Under the terms, Verizon agreed to establish a $175 million common fund to compensate affected current and former customers, and to revise its marketing and billing practices to improve fee transparency. The court granted final approval of the settlement in 2022.

The parties reached a class action settlement; the court granted final approval. Verizon agreed to pay $175 million into a settlement fund for affected subscribers and to enhance fee disclosures, without admitting liability.

Whether Verizon Wireless’s practice of charging and failing to clearly disclose monthly Administrative and Telco Recovery Charges in its advertised plan prices constituted deceptive acts, false advertising, and breach of contract under consumer protection statutes such as the New Jersey Consumer Fraud Act.

The case drew widespread attention to the opaque fee practices of major wireless carriers. The $175 million settlement became one of the largest consumer class action recoveries related to surcharge disclosures. It pressured Verizon and other carriers to adopt more transparent billing and advertising practices, and it reinforced the application of state consumer fraud laws to the telecommunications industry, setting a precedent for similar litigation over hidden fees.