Skip to main content

AT&T hit with class action lawsuit over iPhone, iPad data overcharges

A man in California has filed a class action lawsuit against AT&T, alleging that the company’s monthly bills to customers “systematically overstate web server traffic by 7% to 14%,” and in some instances by as much as 300 percent. The complaint specifically addresses AT&T accounts linked to iPads and iPhones. “AT&T’s billing system for iPhone and iPad data transactions is like a rigged gas pump that charges for a full gallon when it pumps only nine-tenths of a gallon into your car’s tank,” the complaint reads.

According to the suit, plaintiff Patrick Hendricks hired an independent consulting firm to investigate AT&T’s billing methods. The suit gives an example where a 50KB website was downloaded using an iPhone, but the user would be typically be billed for 53.5KB of data, a 7 percent overcharge, and sometimes for as much as 150KB, a 300 percent overcharge.

The suit goes on to claim that AT&T not only overcharges customers, but also bills for “phantom data traffic when there is no actual data usage initiated by the customer.” The complaint alleges that this second offense was uncovered after the consulting firm purchased an iPhone from AT&T and then disabled all push notifications and location services, closed all applications, and did not configure an e-mail account. The phone was left untouched for 10 days during which AT&T billed the device for 35 data transactions totaling 2,292KB of data usage, the complaint alleges.

Hendricks is an AT&T iPhone customer with a 200MB data plan that costs him $15 a month. According to the suit, during his October-November billing period Hendricks exceeded his monthly data allowance by 23MB, resulting in an additional $15 fee. “Many of these charges were for phantom data transactions that either never happened or were never initiated or experienced by Mr. Hendricks,” the complaint says. “The remainder of these charges were systematically inflated in terms of the actual amount of data used.”

The suit says that the while the alleged overcharges have a “modest effect” on individual customers, the additional money generated from inflated billings has had a “huge effect” on AT&T’s data revenue. The complaint accuses AT&T of breach of contract, unjust enrichment, unfair competition, and unfair and fraudulent business practices in violation of the Unfair Competition Law in the California Business and Professions Code. Hendricks is seeking restitution for the overcharges as well as compensation for punitive damages for the alleged illicit business practices.

An AT&T spokesman responded to the suit in a comment to PC World: “We have only recently learned of the complaint, but I can tell you that we intend to defend ourselves vigorously. Transparent and accurate billing is a top priority for AT&T.”

AT&T dropped its unlimited data option back in June of last year and began instead offering capped data plans. The company’s tiered data plans include a 2GB option for $25 a month and  a low-end 200MB plan for $15 a month. Users who exceed their limits incur additional fees on their monthly bills. AT&T is reportedly offering some customers a chance to revert to unlimited plans.

Editors' Recommendations

Topics
Aemon Malone
Former Digital Trends Contributor
AT&T just made it a lot easier to upgrade your phone
AT&T Storefront with logo.

Do you want to upgrade your phone more than once a year? What about three times a year? Are you on AT&T? If you answered yes to those questions, then AT&T’s new “Next Up Anytime” early upgrade program is made for you. With this add-on, you’ll be able to upgrade your phone three times a year for just $10 extra every month. It will be available starting July 16.

Currently, AT&T has its “Next Up” add-on, which has been available for the past several years. This program costs $6 extra per month and lets you upgrade by trading in your existing phone after at least half of it is paid off. But the new Next Up Anytime option gives you some more flexibility.

Read more
Motorola is selling unlocked smartphones for just $150 today
Someone holding the Moto G Stylus 5G (2024).

Have you been looking for phone deals but don’t want to spend a ton of money on flagship devices from Apple and Samsung? Have you ever considered investing in an unlocked Motorola? For a limited time, the company is offering a $100 markdown on the Motorola Moto G 5G. It can be yours for just $150, and your days and nights of phone-shopping will finally be over!

Why you should buy the Motorola Moto G 5G
Powered by the Snapdragon 480+ 5G CPU and 4GB of RAM, the Moto G delivers exceptional performance across the board. From UI navigation to apps, games, and camera functions, you can expect fast load times, next to no buffering, and smooth animations. You’ll also get up to 128GB of internal storage that you’ll be able to use for photos, videos, music, and any other mobile content you can store locally. 

Read more
The Nokia 3210 is the worst phone I’ve used in 2024
A person holding the Nokia 3210, showing the screen.

Where do I even start with the Nokia 3210? Not the original, which was one of the coolest phones to own back in a time when Star Wars: Episode 1 -- The Phantom Menace wasn’t even a thing, but the latest 2024 reissue that has come along to save us all from digital overload, the horror of social media, and the endless distraction that is the modern smartphone.

Except behind this facade of marketing-friendly do-goodery hides a weapon of torture, a device so foul that I’d rather sit through multiple showings of Jar Jar Binks and the gang hopelessly trying to bring back the magic of A New Hope than use it.
The Nokia 3210 really is that bad

Read more