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A US wireless broadband provider has been ordered to compensate customers over misleading claims in its advertising.

Verizon Wireless was ordered to make payments totalling over £485,000 to its subscribers by New York attorney general Anthony Cuomo after the firm was found to have falsely claimed that two of its deals offered users unlimited downloads.

The court found that Verizon had failed to make clear to its customers that common usages such as playing games and downloading movies were not permitted under the terms of the contract.

The company also cut off users when the exceeded what was effectively an undeclared monthly usage cap, leaving them without access to the internet.

Attorney general Cuomo said: "This settlement sends a message to companies large and small answering the growing consumer demand for wireless services. When consumers are promised an ‘unlimited' service, they do not expect the promise to be broken by hidden limitations.

"Consumers must be treated fairly and honestly. Delivering a product is simply not enough - the promises must be delivered as well."

Customers who had paid for the Verizon's NationalAccess and BroadbandAccess offers were affected by Verizon's actions.

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