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'Bait and Switch' AT&T iPad 3G Suit Proceeds
Suit Says AT&T Knew They'd Yank Unlimited Data Plan
by Karl Bode Wednesday 20-Jul-2011 tags: legal · business · bandwidth · consumers
A Federal Judge has refused to dismiss a class action against AT&T that claims their mobile data plan for the Apple iPad was "a classic 'bait and switch' fraud scheme" that failed to allow users to change their service plan. According to the lawsuit, AT&T and Apple "touted the availability of an unlimited 3G data plan and the option to switch in and out of the unlimited data plan," then subsequently withdrew the unlimited data plan option one month after Apple began selling the 3G-enabled iPad. Participants of the suit claim that had they known they couldn't switch plans, they would never have bought the 3G version of the iPad, which cost $130 more than the Wi-Fi only version. Stated the Judge:

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"The court finds that the specific information that [AT&T] allegedly concealed - that it would almost immediately be canceling the unlimited plan and denying customers flexible access to such a plan, and that this was its intention all along - is sufficiently set forth in the (complaint)," Judge Whyte wrote.

Meanwhile, some of the suit's claims were discarded, but some will proceed:

The plaintiffs asserted seven claims: (1) intentional misrepresentation; (2) false promise/fraud; (3) negligent misrepresentation; (4) violation of California's Consumer Legal Remedies Act; (5) violation of California's unfair competition law; (6) violation of California's false advertising law; and (7) unjust enrichment. Whyte dismissed claims 4, 5, and 6 without prejudice, and dismissed claim 7 with prejudice. He gave them 20 days to amend.

AT&T has also been sued for allegedly billing iPhone and iPad customers for more wireless broadband data than they actually use.

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The Dv8or
Just call me Dong Suck Oh, M.D.
Premium
join:2001-08-09
Denver, CO

iPad only version?

You must mean Wi-Fi only version.
Ricanlegend

join:2011-05-18
Bronx, NY

I need to jump on this bandwagon

This happen with me

Transmaster
Don't Blame Me I Voted For Bill and Opus

join:2001-06-20
Cheyenne, WY

Not cool but.......

Here is yet another case of a corporation getting sued by a Class action Lawyer who will rake in many millions while the people that actually got screwed will get a coupon for a free BK Whopper combo and a side salad.
--
I am quite sure now that often, very often, in matters concerning religion and politics a man's reasoning powers are not above the monkey's.
- Mark Twain in Eruption

Gbcue
Almost P.E.
Premium
join:2001-09-30
Santa Rosa, CA
kudos:8

Re: Not cool but.......

At least it will change policy and set some kind of precedent for the future.
--
My Blog 2.2

Cheese
Premium
join:2003-10-26
Naples, FL
kudos:1
said by Transmaster:

Here is yet another case of a corporation getting sued by a Class action Lawyer who will rake in many millions while the people that actually got screwed will get a coupon for a free BK Whopper combo and a side salad.

MMMM! Whopper combo and salad!
WHT

join:2010-03-26
kudos:3
said by Transmaster:

while the people that actually got screwed will get a coupon for a free BK Whopper combo and a side salad.

Likely what will happen is the case will settle out of court with the Apple owners told to return their devices with full refund and no ETF, as what happened in the Verizon crippled Bluetooth fiasco. AT&T will make the problem go away by getting rid of the problematic first month crowd, and keep selling the limited data plans to the new users.

Bootes
Premium
join:2005-01-28
Scarsdale, NY

Re: Not cool but.......

There's no ETF which is part of why this case matters. iPads don't have a contract. You can sign up/cancel 3G data whenever you need/don't need it. This was advertised as a great feature of the device when it was announced.

The problem is that you can only keep the unlimited 3G service that was advertised in the beginning if you signed up for data right away and never turn it off.

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ
kudos:4
said by Transmaster:

Here is yet another case of a corporation getting sued by a Class action Lawyer who will rake in many millions while the people that actually got screwed will get a coupon for a free BK Whopper combo and a side salad.

I DON'T THINK SO. awards are rarely over a dollar.
maybe a coupon for a kids junior hamburger.
--
You only need two tools in life - WD-40 and Duct Tape. If it doesn't move and should, use the WD-40. If it shouldn't move and does, use the duct tape.

cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN
kudos:5
Reviews:
·Frontier FiOS

Wait a second...

Wait just one second here. I think the major news item here isn't that the judge refused to dismiss the case. I think the major news is that a class action lawsuit was actually filed. I mean, didn't AT&T have these ruled unconstitutional, an act of terrorism, or somehow related to child abuse/neglect/porn a while back?

gargzo
How You Doin?

join:2000-11-02
South Bend, IN

Re: Wait a second...

lol. Yes I thought so too.
BiggA

join:2005-11-23
EARTH
Reviews:
·Comcast

Bait and switched WHAT?

They can still get data through AT&T, and just because you bought hardware doesn't mean the plans will be EXACTLY the same forever. This lawsuit is pointless and ridiculous. It probably says in the terms somewhere that you can switch to plans CURRENTLY available.
kaila

join:2000-10-11
Lincolnshire, IL

Re: Bait and switched WHAT?

Yeah, but switching it out after only a month on a hot device that the majority of people had to wait to get is kind of deceptive.
--
Jeff Howe
Jeff's Blog - »www.ostjournal.net
BiggA

join:2005-11-23
EARTH

Re: Bait and switched WHAT?

Not really. Not only are the plans very similar to the end user, but the device is not 3G-centric, and most of it's use cases are on wifi anyways.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

T

T will settle out of court- the group will take the deal and they'll get free service/offers from ATT and move along. Those customers that aren't happy with the service will go to VZW and will act like nothing happened.
Mr Matt

join:2008-01-29
Eustis, FL
kudos:1

No hope with a biased Supreme Court!

Even if the class action suit is won at a lower Judicial level the biased Supreme Court will simply kiss AT&T's corporate ass and reverse any adjudication against AT&T.

Sammael1069

join:2011-06-20
united state

Re: No hope with a biased Supreme Court!

said by Mr Matt:

Even if the class action suit is won at a lower Judicial level the biased Supreme Court will simply kiss AT&T's corporate ass and reverse any adjudication against AT&T.


Goober
Premium
join:2000-12-17
Naperville, IL
kudos:4
said by Mr Matt:

Even if the class action suit is won at a lower Judicial level the biased Supreme Court will simply kiss AT&T's corporate ass and reverse any adjudication against AT&T.

The Supreme Court of the United States of America? They wouldn't even spend a second considering this case. It would never make it to them. They would deny cert. in a second.
dave006

join:1999-12-26
Boca Raton, FL

Timing, Timing, Timing

The problem was that many customers were still waiting for the delivery of their iPad 3G due to the heavy demand when AT&T pulled the plan switch.

So yea, AT&T knew they were pulling the Unlimited plan when the offered the iPad 3G. Simple "Bad Faith" offer.

Dave
MrHappy316
Wish I had my tank
Premium
join:2003-01-02
Summerville, SC

No surpise there

I told ya keep on cramming
MrHappy316
Wish I had my tank
Premium
join:2003-01-02
Summerville, SC

Re: No surpise there

As an impartial party i have an unlimited air card and iphone data plan

AD7BK
Premium
join:2000-03-23
Havre, MT
Reviews:
·3Rivers Communic..

Ma Bell (Or Ma Cell)

Some day AT&T will be Ma Cell. As for the "Bait and switch" that seems common place for them as of late. Once they buy T-Mobile then they will be Ma Cell with GSM. Even my GSM provider is partnered with them. However I do not mind the free Cell+internet+text with Cellular One here in RURAL Montana. In your EAR with a can of beer AT&T and my internet is truly unlimited!!!! (edge service but can't complain for the $60.00 investment for triple play: Cell phone, home~cell and an air card with no limit on the data for 30 months) No kidding. If you are in RURAL Montana call Cellular One and see if you can get this.

Some lucky guy in Montana. BTW this is NOT SAFELINK
--
The following statement is true...
The preceding statement was false!!--George Carlin

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