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Apple, AT&T sued over iPad data plan change

When the iPad was first announced, Steve Jobs seemed very proud of the data plans his company had negotiated for the 3G model. The top-of-the-line plan featured unlimited data for for US$30 per month. A few weeks later, on June 2nd, that plan was replaced with 2GB of data for $25 per month.

Customers were not happy.

Today, a class action lawsuit has been filed against Apple and AT&T, claiming fraud and misrepresentation. Specifically, the plaintiffs in the nationwide suit alllege that both Apple and AT&T "deceptively promoted" that they could switch, month by month, between the unlimited plan and the 250MB plan. Now customers who opt for the unlimited plan cannot switch back to a limited plan.

The whole thing smells like the old bait-and-switch, enjoyed by plaid-wearing used car salesmen everywhere. Good luck to all involved.

[Via MacDailyNews]




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When the iPad was first announced, Steve Jobs seemed very proud of the data plans his company had negotiated for the 3G model. The...
 

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Andrew

People ordering before June 6 were supposed to be grandfathered... but I ordered mine June 3 and just called to activate the unlimited plan. Nope, apparently you had to activate the unlimited plan before June 15. My unit didn't even arrive by June 15!

In my case, 2GB is probably enough - but I'd prefer to just not worry about it. Bought the unit planning on Unlimited for $30. Doesn't seem right...

(Before this morning, I was one of the few AT&T fans)

July 26 2010 at 1:26 PM Report abuse rate up rate down Reply
bruce

It most certainly IS a bait and switch, and as a lawyer I've been waiting to hear about just such a class action from the moment i heard "unlimited data" was reduced all the way down to 2gigs/month.

I personally bought the plain wifi iPad, since I am not gonna carry it with me wherever I go and I have the iPhone for 3G (and I do have unlimited data on that).

The only problem with this lawsuit is I thought the people who bought 3G ipads and got the unlimited data plan were being grandfathered in so they can keep paying the $30/month for said unlimited 3G data plan. If that's the case, then nobody lost anything, there was no bait and switch. As for people who wanted to buy one and wanted to get unlimited data, that's too bad, but nothing to sue over.

But for the people who bought a 3G iPad, had it delivered and didn't receive it in time to active the unlimited plan before the unlimited plan option went away ... they certainly have a good case. But I'm sure that's not a very large # of people and AT&T could easily solve this by letting anyone who bought/ordered a 3G ipad within, say, 10 days of their decision to get rid of the unlimited plan be grandfathered in so they too can have the plan... problem solved, no damages.

June 28 2010 at 12:39 PM Report abuse rate up rate down Reply
russ99

AT&T is going about this the wrong way. The issue here isn't the charges, it's the removal of data freedom.

If they charged $40-50 a month for unlimited data and the current capped plans, they'd make plenty on those of us who can't work with a 2G cap, and still rein in the more casual users and those not willing to pay.

Problem solved.

June 27 2010 at 11:23 PM Report abuse rate up rate down Reply
1 reply to russ99's comment
Dorv

I got torched on Macrumors for making the same suggestion.

June 30 2010 at 9:13 PM Report abuse rate up rate down Reply
Loptimistk

I really think what AT&T should do is something like unlimited access to google / apple / yahoo / bing stuff so that people will complain less about their necessary usage.

other than those, 200MB / 2GB is reasonable, I think.

June 27 2010 at 4:28 AM Report abuse rate up rate down Reply
DAVIDSCUBADIVER

Class actions make the lawyers rich and get class members a gift card or coupons. It was misleading for Apple to announce a groundbreaking deal as if it was anything other than a loss easing bait and switch scheme to get a lot of ipads sold. Honestly, the only thing that would make it right is to refund early buyers $130.

June 26 2010 at 6:29 PM Report abuse rate up rate down Reply
howie

Normally, I'm not a supporter of anyone who sues Apple since the suits are usually over something really stupid. However, in this case, I have to agree with this lawsuit. I'm not sure though that Apple was fully complicit in this bait and switch tactic, but they were still involved. What I'm angrier about is AT&T trying to sell tethering to us for an extra $20, and still cap the data at 2GB. They're greedy bastards!

June 26 2010 at 9:41 AM Report abuse rate up rate down Reply
exnewt

Companies do this all the time, it is called the "fine print"; I am not saying I agree, just stating a fact.

This was also as I recall pre-announced at a prototype demo. Do you mean *insert collective gasp* that the T&C (Terms & Conditions) changed from prototype to finished product?

Remember that "class action lawsuit" is an anagram for "I assist actual clown" which refers to the lawyers who file these. Do you realize that at least 50% and as high as 78% of the fees collected go to the lawfirm? No one has insurance for class action suits, as they are uninsurable. A suit like this just adds to the cost of doinng business, which in turn adds to the cost of any product/service.

What AT&T should have done was offer an "unlimited" for the same $, but as someone noted but a "fine print cap" on it, and offer a cheaper $15/2 GB.

June 26 2010 at 7:04 AM Report abuse rate up rate down Reply
Brian

They deserve to be sued. Specifically AT&T. I don't know how much of this Apple knew. It's probably not too bad of a deal for iPhones, but it's very bad for iPads, and AT&T REALLY deserves to lose this battle.

June 26 2010 at 1:46 AM Report abuse rate up rate down Reply
joel

Glad I wasn't the only one who felt this way.

June 25 2010 at 6:51 PM Report abuse rate up rate down Reply
Ed

I hate superfluous lawsuits, but this one has legs - touting the unlimited data for $30, making a huge deal about it, and then removing it as an option roughly 2 months later?

Not good business. And certainly opens both Apple and ATT up to this lawsuit. I don't use that much data via 3G, but glad someone got pissed off enough to do it for those months I do.

June 25 2010 at 4:53 PM Report abuse rate up rate down Reply
3 replies to Ed's comment
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