Technically, they are no longer activated, but non-technically, they still charge a $40 "activation fee" on top of the phone's advertised price. Basically an F.U. fee. The phone is $50 with a two year contract. Oh, you want one? Sure, that will be $90 please. What?, but you said $50. Sure we did, but we like to charge you an extra $40 just because we can.
I actually like Verizon. I get great quality phone service, and their customer support has always been stellar. I just wish that if they're going to charge $90 for the phone they tell you up front instead of advertising a false price. I imagine that all the carriers do the same thing.
When I become Emperor of the World, the price they advertise will be the price you pay.