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Lawsuit says AT&T overcharging users for iPhone, iPad data

A new class action lawsuit claims that AT&T "systematically overstated data usage by 7-14 percent and sometimes up to 300 percent" on users' iPhone and iPad data plans, according to MSNBC. The lawyers for the suit have said that they have spent over US$80,000 testing iPhones on AT&T's network to prove AT&T's overstating data usage.

As part of the testing, the lawyers turned off every feature on the iPhone that could use 3G data. Even after shutting off all 3G data connections, there were still 35 transactions for data usage on the lawyers' AT&T bill. The lawyers say that while the cost to some affected users is relatively small -- $10-15 a month -- AT&T is illegally reaping huge profits from overstating data usage on the bills of millions of iPhone users.

AT&T has responded to the claims, calling them "without merit." The company says that the lawsuit doesn't take into account "automatic app updates in the background that customers may not be aware of." However, unless they are talking about push notifications, apps don't automatically update. Plus, if 3G is turned off as it was in the lawyers' tests, there is no reason any "automatic app updates" should incur data usage fees.



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iPhone iPad

A new class action lawsuit claims that AT&T "systematically overstated data usage by 7-14 percent and sometimes up to 300 percent"...
 

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Johan

$10-$15 per month? On my recent trip to Japan data traffic via roaming cost me $20 per megabyte. Time for another law suit?

May 21 2011 at 11:48 AM Report abuse rate up rate down Reply
dennis636223

I read this article on April 27, 2011.

It states: "Like many telecommunications operators, AT&T’s contract includes a clause that says its customers can use arbitration to settle disputes with the operator but may not file class-action lawsuits.
However, high courts in some states, including California, have held that if a consumer must sign a contract for a service, and if the dispute will involve small amounts of damages, then consumers are entitled to file class-action lawsuits against a provider, even if the contract says otherwise.
In its decision Wednesday, the U.S. Supreme Court overturned those rules in California and other states."

So basically, even if AT&T loses this case, in some states, consumers would have to apply for suit on their own with their own facts in order to get some cash from this greedy mammoth we call AT&T. Good luck to you all...... And me!

May 20 2011 at 9:11 PM Report abuse rate up rate down Reply
DT

2 weeks ago I got that txt saying I had used 90% of my data plan, so, I went into the Settings and turned the 3G off; The next morning I got a txt saying I'd used a 100% of my data plan and I would be billed the $10per txt. Such BS, I really hope AT&T gets raked over the coals...and then some.

May 20 2011 at 12:53 PM Report abuse rate up rate down Reply
1 reply to DT's comment
Brandon

Even though you disable 3G you'll still use data (EDGE, GRPS), you need to switch off the "Cellular Data" option

May 20 2011 at 1:46 PM Report abuse rate up rate down Reply
studio

They are CROOKS! in the end, they will be cheating themselves and they will be the ones to get SCREWED. They should remember the droves that left Sprint! When you are making a ton of money, STEALING is just plain stupid at the risk of your business! With my iPad, I don't really need an iPhone! So, go ahead and be as greedy as you like, there is NO PROFIT from 0.

High price data plans and poor service = no customers! If Verizon ever gets their act together and get data and voice working together, AT&T will slowly go away and they know it. So, keep taking us for granted and see what happens!

May 20 2011 at 12:16 PM Report abuse rate up rate down Reply
Morac

I think the law suit has merit. The amount of data AT&T says I use on my iPad 2 is always a few hundred more MB per month, than what the iPad 2 itself says I use. I always reset the usage on my billing date and the difference between what the iPad 2 reports and what AT&T reports grows steadily throughout the month.

May 20 2011 at 12:15 PM Report abuse rate up rate down Reply
AlexO

I roam a lot in the US and although my data usage patterns dont change when I'm there, AT&T reports a jump in usage of about 10 times my usage in Canada. There is something definitely wrong in the way they account for their bandwidth.

May 20 2011 at 10:31 AM Report abuse rate up rate down Reply
phillpafford

http://gizmodo.com/5599621/those-nighttime-iphone-downloads-are-actually-not-downloads?comment=26719999:26719999

AT&T's official statement is:

This is a routine update of your daily data activity on your device to ensure the accuracy of your data billing. Customers are not charged for data usage, given that no data session is generated. It's not uncommon for devices that are ‘always on', like iPhone, to process data event records for billing purposes after a certain amount of inactivity or after long periods of time. It's also separate from how our system lets you monitor your data consumption.

May 20 2011 at 10:02 AM Report abuse rate up rate down Reply
Britonius

I have been screaming about this issue, since I switched from the original iPhone (2G) to a 3Gs last December. My data was staying under 200MB each month easily on my old Unlimited plan. Best Buy said I could not keep the original iPhone unlimited plan, so I had to upgrade to the new 200MB plan or pay more for the 2GB plan. Now while using the 3Gs, I consistently get very close or exceed my 200MB. I just surpassed my plan last month by 2MB and that cost me $15 more. I am 7 days into this month and I have already been warned that I have reached 65% of my plan. Really? How is that possible? I don't use it that much and I work from home on Wifi or I am at church on Wifi. Very rarely due I use it on the road using 3G. I understand 3G is able to pull more data than the old Edge network, but they should have made the lower limit like 500MB rather than 200MB. That is a huge jump from 200MB to 2GB. Stick it to them! Maybe they will wake up and give us a break. Seriously doubt it, but I can hope.

May 20 2011 at 9:42 AM Report abuse rate up rate down Reply
4 replies to Britonius's comment
Joshua

Hmm...I suppose $10-$15/month isn't a lot if you just take it one month at a time. But through the course of a year, thats $120-$180 dollars! So yea, because I have no love for AT&T I would like to see an opt-in check.

May 20 2011 at 8:50 AM Report abuse rate up rate down Reply
Darrin

Anyone knows that if you have any version of the iphone other than the original and live in an area that is not serviced by 3G towers you still have to pay for 3G services. Fortunately, our area has 3g but there was a time when it did not and my bill went up 10/month for something they did not offer. Now, I wish, I could own business and charge my customers for an item that I don't even offer and it all be ok. Just another way to steal money from customers. I don't know or care anything about this suit because as stated already, customers will get nor see anything in the form of changes or credits that would mean anything to us. And in all actual reality, just as all the patent suits, they cost customers money in the form of higher costs passed on the customers to pay attorney's.

May 20 2011 at 8:07 AM Report abuse rate up rate down Reply
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