AT&T Unlimited Data Plan Lawsuits

May 5, 2022 by Lewis
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A new lawsuit alleges that Verizon throttled internet speed during a time of crisis. During the Mendocino Complex fire in California, which was half the size of Rhode Island, Verizon cut the speed to a crawl and refused to increase the speed without a new data plan. Fire chief Anthony Bowden argues that the action of Verizon interfered with firefighters’ ability to do their jobs effectively. He also alleges that Verizon’s inaction was unnecessary because the company is required by law to increase the speed of internet access to the public.

AT&T

In a recent settlement, AT&T has agreed to pay out $60 million to settle an AT&T unlimited data plan lawsuit filed by customers. The FTC claims that AT&T misrepresented its “unlimited data” plans, charging customers for plans that included data caps of 2 GB and then throttling their speeds once the cap was reached. This is the first time a customer has been able to sue AT&T for misleading them.

The original lawsuit was filed by Marcus Roberts in 2015. In it, he accused AT&T of throttling his data. He also claimed that AT&T had violated the FCC’s rules regarding mandatory arbitration agreements. This lawsuit was settled by the company in February 2020 after the court ruled against AT&T on appeal. Though this settlement means a change for AT&T, it is unlikely to have a significant impact on the way telecom companies handle “unlimited” data plans.

Verizon

A class-action lawsuit alleges that Verizon is violating the law in California by imposing unreasonably high charges on its customers with its “unlimited data plans.” The suit claims that the company violated the California Consumers Legal Remedies Act, False Advertising Law, and Unfair Competitions Law. In addition, the lawsuit seeks damages for “Administrative Charges,” which are charges that the company adds to customers’ bills without their knowledge. The company has been hit with fraudulent charges in the past.

After a massive backlash against its ‘unlimited’ data plans, the FCC began an investigation into the practice. In 2009, reports in The New York Times and The Plain Dealer of Cleveland raised concerns about the practice. Verizon responded to the complaints with an investigation. It is unclear whether the commission acted in good faith, and the company said it is working to resolve the matter. However, the FCC has not yet announced a ruling on the case.

T-Mobile

A recent lawsuit has exposed the pitfalls of T-Mobile’s unlimited data plans. While the company claims to have no limits on data, it throttles users’ speeds and cuts off their service after they use more than 10 gigabytes. According to the lawsuit, Alvarez was not told of this limitation when he bought the phone. The company admits that it throttles its customers’ data but disputes that it disclosed this to its customers.

In an agreement with the FCC, T-Mobile agreed to pay $7.5 million to consumers who have been created by the company’s “unlimited” data plan advertising. This settlement will also reward those who were cheated out of hundreds of dollars in data by the company. Consumers will also receive discounted phone accessories. The lawsuit aims to make T-Mobile abide by the law. But, likely, the company won’t comply with this settlement.

Sprint

The latest lawsuit filed by a customer against Sprint isn’t a surprising move. Consumer advocates are worried that the new rules will lead to higher wireless prices and job cuts. Labor unions and many Democratic lawmakers are worried about the impact of the new rules on rural areas. Antitrust lawyer Amanda Wait says the states are simply taking action because they disagree with the federal government. The Justice Department and Sprint didn’t respond to requests for comment.

The company is claiming that it underpaid sales tax by about $210,000 per week for the past seven years. While Sprint is stating that the state attorney general has applied an ‘out-of-context’ provision of the law, the company maintains that taxes should be paid on a flat-rate data plan. While Sprint is disappointed in the ruling, the company plans to continue offering its flat-rate data plan, even though most of its competitors have switched to a tiered pricing model.

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