The New York Attorney General’s office said Verizon’s "unlimited" plans had hidden restrictions against streaming or downloading video or playing video games, but those restrictions were not clearly presented to subscribers.

Once subscribers reached what Verizon (seemingly arbitrarily) deemed "excessive," they were unable to connect wirelessly to the Internet via phones or modems.

“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,” said Attorney General Andrew Cuomo.

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

Verizon Wireless also agreed to pay $150,000 to New York state and to revise the company’s marketing of its wireless Internet access plans.