In a class action claim brought by current and former customers against Verizon Wireless for violations of the Consumer Fraud Act, the New Jersey Appellate Division held that the arbitration agreement is unenforceable as it contains provisions which are both unconscionable and a violation of state public policy.

The proposed class action was filed on Feb. 22, 2022, on behalf of 28 plaintiffs and all other current and former Verizon Wireless customers in the state. The complaint alleged that Verizon violated the CFA and other statutes by failing to disclose a $1.95 monthly administrative charge. Verizon moved to compel arbitration and stay the proceedings under the arbitration clause in the customer agreements.