You may have heard about the AT&T class action lawsuit, where customers were throttling their data speeds after using as little as 2 gigabytes of data in a billing period. While you may be unsure of your legal rights, you should contact a lawyer to learn more about your options and your rights. If you’re unsure how to proceed, you can visit an attorney directory to find a lawyer in your area.
AT&T is throttling data speeds after customers used as little as 2 gigabytes of data in a billing period
The FTC has decided to act on a complaint filed by the Federal Trade Commission (FTC) accusing AT&T of throttling data speeds after consumers used as little as two gigabytes of data during a billing period. The FTC has alleged that AT&T misled customers by advertising “unlimited” data plans but in fact, slowed down consumers’ network speeds when consumers used fewer than 2 gigabytes of data in a billing period.
The throttling is especially frustrating for users who use the phone primarily for GPS purposes and play with it occasionally. Many users were unable to access data for the remainder of the billing period after AT&T’s decision. But this is not an insurmountable obstacle – the company can easily make up for its missteps in future billing cycles.
Class action lawsuit filed against AT&T
A class-action lawsuit filed against AT&T over data use aims to give customers back their data. The data plans offered by AT&T have been throttled for customers who use more than three gigabytes per month. This has prompted many consumers to file a class-action lawsuit. However, the lawsuit was defeated by AT&T in March 2016. In April 2017, the California Supreme Court decided to change the state law that governs mandatory arbitration agreements. In February 2020, a panel of US appeals court judges ruled the mandatory arbitration clause unenforceable. Last week, the two sides announced a settlement.
The lawsuit claims that AT&T abused its customers’ trust by overcharging them for data that was never transferred. During one 10-day stretch, AT&T billed customers for 200MB of data over their standard allowance. The lawsuit claims that these overcharging practices led to inflated bills. While AT&T maintains that it has made no errors in billing customers, the company has failed to do enough to protect its customers.
Settlement amount
The AT&T lawsuit for throttling data usage has reached a settlement amount. It will pay out a combined $23 million to eligible AT&T wireless customers. The lawsuit claims that AT&T throttled data speeds after subscribers exceeded data usage caps. The lawsuit also claims that AT&T hid this fact from consumers. While it is unclear if AT&T is liable for this problem, it is unclear how consumers will receive the money.
AT&T is being forced to pay $60 million to settle the lawsuit brought by customers who were misled into subscribing to “unlimited” data plans. The allegedly false claims pushed consumers into paying for “unlimited” data plans, and then cut their speeds when the usage exceeded a certain limit. The settlement will be a major victory for consumers and is expected to save AT&T millions in back-pay.
Measurement of usage
AT&T is under fire from customers who say they were overcharged for data usage. The company claims it measures data usage and communicates that information in monthly bills. But this isn’t always possible, and consumers are unable to verify the charges they receive. The wireless company’s transparency and accuracy in billing are essential for consumers, as well as the competitive wireless industry. So how accurate is AT&T’s measurement?
AT&T agreed to provide standardized plans, but instead charged its customers wildly varying amounts for their rate plans, data, and add-ons. Because AT&T’s meter doesn’t accurately reflect actual data usage, users felt they had to pay astronomical fees for their service. To make up for that, the company allegedly violated AT&T’s terms of service, requiring it to offer a plan with a standard data usage cap. This caused customers to spend thousands of dollars more than they needed to.
