Verizon Wireless sues Alltel over ad claims: Fight centers on ability to change plans without affecting contracts

Verizon Wireless filed a civil suit against Alltel Corp., accusing the No. 5 carrier of false advertising. Verizon Wireless’ suit takes issue with an Alltel ad that claimed “only Alltel gives wireless customers the ability to change their calling plans without having to extend the term of their contracts,” according to the suit filed in federal court in Richmond, Va.
In early October, Verizon Wireless began allowing its customers to change their wireless plans without requiring an extension of their contracts.
Soon after the announcement, Verizon Wireless contacted Alltel about the carrier’s ad, and requested that it be changed. According to Alltel, the carrier complied.
“We did make edits to that ad to accommodate Verizon’s position,” said Andrew Moreau, a spokesman for Alltel. “The version of the ad that Verizon filed with its complaint was a prior version of the ad so it didn’t reflect the edits that we made.”
But Verizon Wireless claims Alltel continued to air the unedited advertisement throughout last year and into 2008.
“Verizon Wireless notified Alltel of these falsehoods and reasonably believed that any such false advertising would cease on or before Thanksgiving,” Verizon Wireless wrote in court documents. “However, Alltel has continued to run advertising falsely and misleadingly contending that only Alltel offers wireless customers the ability to change their service without changing their contract term.”
Verizon Wireless declined to comment beyond the lawsuit.
Verizon Wireless and Alltel are not alone when it comes to giving customers the ability to change their calling plans without having to extend the term of their contracts; Sprint Nextel Corp. announced it would offer the same service shortly after Verizon Wireless’ October announcement.