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 © 2026 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

AV Bulletin: Midyear Roundup

Since the U.S. Supreme Court’s decision in Free Speech Coalition v. Paxton, more state age verification laws have been enacted around the United States, as well as proposed at the federal level and in other countries. Meanwhile, lawsuits resulting from AV laws have begun to play out in the courts. This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Judge Dismisses Last NCOSE-Backed Suit Over Kansas AV Law

A federal judge on Monday dismissed a lawsuit alleging that adult site SuperPorn violated Kansas’ age verification law, citing lack of jurisdiction after similarly dismissing two related cases earlier this year.

ASACP Updates 'Restricted to Adults' Labeling Resource Page

The Association of Sites Advocating Child Protection (ASACP) has updated its Restricted to Adults (RTA) labeling resource page.

Federal AV Proposal Scores Minor Win in House but Remains in Doubt

A newly announced bipartisan agreement in the U.S. House of Representatives Committee on Energy and Commerce may soon bring a proposed federal age verification law before the full House, but the measure continues to face an uphill battle.

Arizona Governor Vetoes 'Protect Act' With New Consent Provisions

Arizona Governor Kate Hobbs on Friday vetoed HB 2133, the “Protect Act,” which would have imposed new requirements for adult content uploaded online.

Brazil Begins Monitoring 18 Adult Sites for AV Compliance

Brazil’s National Data Protection Authority (ANPD) is now monitoring 18 high-traffic adult websites for compliance with the country’s Digital Statute for Children and Adolescents (Digital ECA), which requires such sites to age-verify users located in Brazil.

Ofcom Fines First Time Videos $100,000 for AV Noncompliance

U.K. media regulator Ofcom on Thursday imposed a fine of 80,000 pounds (more than $100,000) against First Time Videos, which operates FTVGirls.com and FTVMilfs.com, for failing to implement age checks required for compliance with the Online Safety Act.

Curves Ahead: How BBW Creators are Turning Differentiation Into Competitive Advantage

For centuries, curves have been celebrated as a symbol of beauty, sensuality and power. From the soft opulence of Rubens paintings to the glamorous silhouettes of pinup icons, fuller figures have long occupied a place in art, fashion and fantasy.

Woodhull Freedom Foundation to Host Virtual 'Pride' Edition of 'Fact Checked' Series

Woodhull Freedom Foundation is hosting a Pride Month virtual edition of its series “Fact Checked by Woodhull.”

'InMelanin' Relaunches Through PAYSITE

InMelanin.com has officially relaunched through PAYSITE.

Show More