Frustrated Customers Allege that Verizon Forces Them to Pay to Replace Defective Phones

CLEVELAND—August 14, 2024—Frustrated Verizon (NYSE: VZ) customers are sharing complaints that the company is forcing them to pay to replace defective mobile devices they bought from the carrier. Their phones repeatedly dropped calls or missed calls altogether. After reporting these difficulties to Verizon, they were told that their only option was to purchase a new device.

“It’s not a safe feeling when people who depend on you can’t trust Verizon to connect their calls, because the phone Verizon sold you doesn’t work properly,” explained Hugh Taylor, a longtime Verizon customer who experienced this issue. “And, it’s quite galling to be told, in effect, ‘Sorry, that $1,000 phone we made you buy doesn’t work, so go ahead and spend another $1,000 for a new phone that may not work any better. You can trust us not to stand behind it.’ Is that quality? Is that service? Is that valuing the customer? I think not.”

Forcing customers to pay to replace defective phones may seem like a minor issue in the scheme of things, but it reveals a great deal about the real impacts of non-enforcement of anti-trust laws in the USA. Verizon and AT&T comprise a virtual duopoly for American wireless service, and their customer service quality appears to reflect that market dominance. “A business that actually had to compete to win your business would never stiff people like this,” Taylor added. “They would be punished in the marketplace. However, if you’re Verizon, you effectively own the marketplace, so why do anything for customers?”

The “sorry, but you’re forced to waste your money” policy also showcases the unintended consequences of the ethos of maximizing shareholder value in American corporate management. The drive to increase short term earnings at any cost actually destroys brands over time—and this little incident shows how that can happen. Taylor, for example, would be spending something like $24,000 with Verizon over the next 20 years if he stays with the carrier. Refusing to replace a phone that they’ve already been paid for—the better to squeeze a little more margin this quarter—puts a lot of future revenue and market capitalization at risk.

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Photo by Jessica Lewis 🦋 thepaintedsquare: https://www.pexels.com/photo/iphone-6-earpods-and-macbook-on-flat-lay-photography-583842/