Suit: AT&T Rigs Bills for iPhones, iPads

SAN FRANCISCO — In another suit over iPhone and iPad services, AT&T Mobility has been hit by claims that it systematically overstates data numbers for each transaction and that it bills phantom data traffic.

The suit, waged by plaintiff Patrick Hendricks who seeks class action status, says AT&T's billing system "is like a rigged gas tank that charges for a full gallon when it pumps only nine-tenths of a gallon into your car's tank."

AT&T has faced a barrage of class claims since rolling out iPhone service with Apple, which is not named as party in the suit.

Other class claims alleged AT&T charged for downloads its customers never made, reneged on billing plans for iPhones and charged for services it could not or did not deliver. It also faced a challenge from consumers who couldn't send text messages and photos.

In the latest suit, Hendricks says he hired independent consultants who found that AT&T bills customers for data transactions even if they disable their phones and leave them untouched.

Hendricks claims that AT&T's overbilling "was discovered by an independent consulting firm retained by plaintiff's counsel, which conducted a two-month study of AT&T's billing practices for data usage, and found that AT&T systematically overstated web server traffic by 7 percent to 14 percent, and in some instances by over 300 percent."

"So, for example, if an iPhone user downloads a 50 KB website, AT&T's bill would typically overstate the traffic as 53.5 KB (a 7 percent overcharge) to as high as 150 KB (a 300 percent overcharge).

"It gets worse. Not only does AT&T systematically overbill for every data transaction, it also bills for phantom data traffic when there is no actual data usage initiated by the customer.

"This was discovered by the same independent consulting firm, which purchased an iPhone from an AT&T store, immediately disabled all push notifications and location services, confirmed that no email account was configured on the phone, closed all applications, and let the phone sit untouched for 10 days.

"During this 10-day period, AT&T billed the test account for 35 data transactions totaling 2,292 KB of usage.

Hendricks says AT&T's overcharges "have a modest effect on an individual customer's bill, [but] they have a huge effect on AT&T's bottom line."

And a significant portion of those data revenues were inflated by AT&T's rigged billing system for data transactions, Hendricks says.

"AT&T has 92,8 million customers. In the fourth quarter of 2010, AT&T reported its wireless data revenues increased $1.1 billion, or 27.4 percent, from the year-earlier quarter, to $4.9 billion."

With the case, Hendricks seeks restitution and class damages, breach of contract, unjust enrichment, unfair and fraudulent business practices, unfair competition, and violations of the federal Communications Act.

Related:  

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

OpenAI Shuts Down AI-Generated Porn Rumors

A spokesperson for OpenAI, the company behind ChatGPT, has shut down online chatter about how a rumored relaxation of the company’s stance against AI-generated NSFW content may result in a lifting of its porn ban.

9th Circuit Upholds Verdict Against Oregon College for Discriminating Against Former Adult Performer

The 9th U.S. Circuit Court of Appeals on Monday upheld a 2022 Oregon jury’s verdict in favor of Nicole Gililland, a former nursing student who sued her school for discriminating against her because of her adult performer past.

Former Trump Staffer, Project 2025 Advisor John McEntee Predicts a Total Porn Ban

John McEntee, senior advisor to the Heritage Foundation’s Project 2025 and a former key figure in the Trump administration, is predicting an eventual full ban on pornography, claiming that once it is enacted, “this country will flourish.”

Vendo Launches 'Pay by Bank' Service

Vendo has launched its new Pay by Bank checkout system.

CrakRevenue Taps Maxime Bergeron as New CEO

CrakRevenue has appointed longtime staffer Maxime Bergeron as the company's new CEO.

Clips4Sale Adds 'Spatial Video' Category

Clips4Sale (C4S) has debuted a “spatial video” category for the next generation of VR and AR devices.

Lemon Social Launches Educational Program, 'Metaverse' Feature

Premium fan platform Lemon Social has debuted an "Adult Content University" program and a "Lemon Social Metaverse" feature.

Australian Conservatives Raise Concerns About US-Born Online Censor

Long after progressive free speech advocates in Australia questioned eSafety Commissioner Julie Inman Grant over her campaigns to target adult content, conservatives and libertarians are now raising concerns about the powers granted to the country’s top censor — an unelected former tech exec born in the U.S. — with some calling for her ouster.

Cupcake Girls, Aylo Partner on Educational Video Series for Performers

The Cupcake Girls and Aylo have teamed up to produce a series of educational videos focused on safety standards for adult performers.

My.Club Appoints Nicole Aniston as New Brand Ambassador

My.Club has named Nicole Aniston its newest brand ambassador.

Show More