Well, for all the people seeing this and not being able to answer my question: After 2 hours of being on the phone with Verizon and Apple, it appears the app store should be using wifi but the 2 phones I have are not. After further researching the issue it appears that its an iOS 6 issue. Have seen people reporting their problem was fixed with a new phone but have seen even more claiming they have had upwards of 5 replacements and still no go on the wifi working.
It also appears that not even the browser on the phone is using wifi so its not just the app store having the issue.
Apple, in its usual act of cowardess is not admitting there is a problem but they have asked for me to send in all of my network router information so they can send it to their engineers. They appear to know there is an issue here but not saying much as usual.
Kills me how a company so great at everything else can be so bad with something as simple as communicating with their customers.