A Verizon spokesperson has confirmed to Recode that the company is going to pay a $50-million settlement to resolve allegations that it illegally restricted consumers’ ability to renew their contracts through a network-wide option.
Verizon previously agreed to pay more than $40 million in a separate civil case filed against the company in 2015.
In the new settlement, Verizon agreed to provide a list of specific types of services and products that it said could be accessed through the network-level renewal option and will pay $10 million to each of the individuals who had signed up for a contract that required a network change.
The companies also agreed to issue an apology to consumers who had been affected by the policy and to ensure that it is not used in future.
Earlier this year, Verizon said it was going to introduce new data-usage limits that would be implemented over the next several months, as well as other changes to its service, including a requirement that new subscribers sign up for its prepaid plans first.
A spokesperson for the Justice Department said Thursday that it was investigating Verizon’s settlement with the FTC.
Last week, Verizon’s top lawyer said the company was “deeply committed” to getting consumers back on their feet, adding that the “full impact” of the agreement will be felt in the next few months.
More from Recode:Verizon’s $50M settlement to settle FTC claims of network-based data-restrictions, which affected thousands of consumers in 2015Verizon: Customers with unlimited data can only renew through network-type optionVerizon is now taking the next step to get customers back on track by rolling out new data rules to customers and will offer customers who want to pay for a data plan a way to do so.
If you’re new to Verizon, you can read more about how to sign up and sign up to Verizon’s prepaid plans here:The new policy, which was introduced earlier this month, requires Verizon customers to enroll in a network data-management program.
That program will allow Verizon customers who signed up in 2015 or 2016 to renew in 2019.
Verizon also will offer a new data rate plan, with a minimum monthly cost of $50,000 for customers who have at least $1,000 in data on their accounts, and $50 for customers with $1 million or more in data.
Verizon will offer unlimited data for a year.