AT&T Makes Its Terms of Service Even Worse, To Discourage Lawsuits
techmuse writes "AT&T has changed its terms of service (including for existing contracts) to prevent class action suits. Note that you are already required to submit your case to arbitration, a forum in which consumers are often at a substantial disadvantage. Now you must go up against AT&T alone." This post on David Farber's mailing list provides a bit of context as well.
Now I can cancel my contract with no fee...
... for a class-action lawsuit over their attempt at preventing class-action lawsuits.
512 MB RAM, 20 GB disk, 200 GB transfer, five datacenters. $19.95/month.
Only in a thoroughly corrupt society can big corporations get away with saying "you can't sue me because I don't agree to be sued", while other big corporations win judgments against common people for thousands of times the actual damages. I thought only sovereign nations were supposed to be able to just decline a lawsuit.
Sure you can. Just write that into a binding contract that both parties agree to.
Understanding the scope of the problem is the first step on the path to true panic.
What further evidence do we need that "sanctity of contract" should not be the most important principle in a legal system?
Contracts are weaker than the law. If your contract has terms that are forbidden by law, those terms are void (and possibly the entire contract, and you might be liable for punitive damages).
Of course, I have no idea if US law has such provisions against attempts to forbid class actions.
We're the phone company.
Help stamp out iliturcy.
you will have to agree to pay their legal fees if you sue them... and pay for any dammages that may be awarded too :)
Never antropomorphize computers, they do not like that
Aren't they, as cosigners, required to honour the original contract?
Someone else wrote "great, now I can get out of my contract for free", but are you really required to rip up the contract you already have? That they won't renew the existing contract is fine, but ... telling you to rip the one you have up?
I'm fairly certain you couldn't do it the other way around.
"AT&T? Hi, I'm just calling you to tell you, that I've faxed over the new terms of our contract, stipulating that I get to spank your CEO in public every Saturday afternoon. You can either sign it or release me from my contract. Yours truly $name."
Somehow I think that'd just be ignored by AT&T and the courts alike.
This is very reminiscent of lengthy, legally binding EULAs on software and webpages that the average consumer doesn't read or understand.
That works fine in non-monopolistic markets. When AT&T is your only choice for DSL, however...
...I know nobody ever reads TFA, but there doesn't actually seem to be one here. Just a link to the company's website, and two articles to provide context to the non-existent article.
...take away consumers right to class action lawsuits? I thought requiring arbitration was one of those things like signing a waiver from liability, it gives the illusion of some legal protection, but it's not always the case? IANAL Please advise/inform if you know.
I find this repulsive because AT&T services are something that should be considered a life necessity. Since AT&T is the only business that provides these services, consumers have no choice where to get this required need to sustain their lives.
What we really need is another option than AT&T, so that when we are given the contract to sign, we can just say "no" and go to a competitor with a less stringent contract.
That will be the day, friends, when the first competitor to AT&T arrives and gives us an option.
Oh, wait...
i agree, do they have the legal right to prevent class-action lawsuits. i don't think they do.
(including for existing contracts) from the summary
I love how they change the contract after you have agreed to it.
A number of cases like this have gone through the court. Often enforcement is at the State level, but several state courts have indicated that terms like this are not enforceable.
The problem is, the morons who are only going with AT&T because they simply MUST have an iPhone are the same type of idiots who won't read their bills, much less the contract before signing it. Did you know that if you call AT&T to complain about minute overages and data use charges, your service can be terminated without notice, immediately? I can assure you that it won't unless you start making threats over the phone, but it's in the damn contract, in which the only fine print is the names of the cities on the coverage map.
From what I understand they don't have the right to limit all complaints to arbitration, but the contract is there to make people THINK they have given up the the right to sue.
This clause is likely no different.
I already canceled my AT&T service over their use of warrantless surveillance, their censoring of Pearl Jam, their blocking of web sites, and their influencing of American Idol voting outcomes. There are alternatives out there, and AT&T will only be able to continue doing stuff like this as long as people keep doing business with them.
H.R. 1020 is an attempt to put some reasonable limits on mandatory arbitration. It's not doing too well, but write your congressman.
Sure you can. Just write that into a binding contract that both parties agree to.
Um, that's kinda the point nonewmsgs was making. Can you make such a contract that is actually binding? Just because a contract has been understood and agreed to by all parties does not make it binding.
While private companies' contracts may seem outrageous, nothing beats the government agencies at this game:
In Soviet Washington the swamp drains you.
The link in the post above points here:
http://www.businessweek.com/magazine/content/08_24/b4088072611398_page_2.htm
Is that the correct article? That one seems to be about bank issued credit cards--was this intended?
It seems that in the USA the corporates can just bend you right over and fist fuck you till they have extracted all they can then just toss you away like yesterdays garbage.
Exactly. They can put in the contract that you have to kiss a moose on the buttcheeks if you are late on your payment, but terms of a contract holding up in court are a different animal. Likely this is more to discourage people who don't know any better from filing a class action suit, but it won't prevent them.
There are a lot of specific examples of where you can't just dump in certain exemptions into your TOS and wash your hands of liability. I'm surprised this isn't one of them.
I don't see why it's legal in a generic sense to be able to surrender your rights to legal action as a TOS.
I work for the Department of Redundancy Department.
...because of crap like this.... ...because of their secret rooms.. ...because they spied on Americans' emails... ...because they provided the NSA with a database of American's phone calls... ...because they used their influence to lobby Congress to retroactively get immunity and hide their activities... ...because of their former CEO's stated views on Network Neutrality...
I'm telling everyone I know to switch to T-Mobile. I get great 3G reception, they will actually unlock my phone after a couple months, they have great customer support (in my experience), visual voicemail, and they support Android. $25/a month for unlimited internet...
I have NO affiliation with T-Mobile aside from using them for a couple years, and I would invite criticism of them so people can make an informed decision. I'm just sayin... in MHO an iPhone isn't worth AT&T. For anyone on the fence, Android is actually pretty damn great.
This is a great reason for public-owned internet services. Once they get monopoly power, you feel the business end of their business.
When AT&T is your only choice for DSL, however...
...then you switch to cable.
The problem is, the morons who are only going with AT&T because they simply MUST have an iPhone are the same type of idiots who won't read their bills, much less the contract before signing it.
Wow, Mister Xiado, how'd you come to that conclusion? Wanting an iPhone, and as a result, being tied to AT&T makes one an moron/idiot?
Did you know that if you call AT&T to complain about minute overages and data use charges, your service can be terminated without notice, immediately? I can assure you that it won't unless you start making threats over the phone, but it's in the damn contract, in which the only fine print is the names of the cities on the coverage map.
[Citation Needed] I've read the terms of service (not every word, but the gist of the various sections) and I'd be very surprised that there's anything that says what you've written.
Please, provide a link, or quote from, the relevant section that specifically states that merely complaining about charges allows them to terminate your contract immediately and without notice.
Or was this some sort of reverse idiot test? Where you see how many up mods you can get from idiots who merely like the idea that what you wrote might be true?
State law in Montana forbids waiving your right to a lawsuit and forcing you in to arbitration. I only know this because I was assisting my mom, a lawyer, with finding a phone at Verizon to take to Europe and when they had her sign their agreement she pointedly told the person behind the counter, "You know this isn't legal in Montana!" I assume other states have similar provisions on the books.
... even if AT&T does that will it actually stop them. I can imagine that a court might rule that AT&T can't do this.
Forgive my non-lawyer ignorance, but can you actually forbid someone from suing you? As a retroactive clause in a contract, even?
"By downloading this pirated video off BitTorrent, you have implicitly agreed to forfeit any and all options of initiating a lawsuit for copyright infringement."
Wonder if that would work.
Hint: Probably not. :P
Likely this is more to discourage people who don't know any better from filing a class action suit, but it won't prevent them.
In fact, since this change affects every AT&T customer, this just may be a perfect cause FOR a class action suit.
AT&T/Cingular already tried these terms with their cel-phone service. They failed.
IANAL, but I would say "Probably not", given that AT&T has tried similar clauses before and had them struck down as "unconscionable".
Didn't Comcast already get it's ass handed to them in court over similar terms?
upon the advice of my lawyer, i have no sig at this time
This is a big win for the consumer. We can finally rest assured that AT&T cannot enter into a class action against its consumers.
You might laugh, but this is AT&T we're talking about. To quote Angels in the Outfield: "It could happen."
-William Brendel
On the one hand, the agreement is clearly designed to take away or discourage recourse and thereby reduce AT&T's liability risk.
But on the other hand, no one really benefits from class action suits except the lawyers. I mean, yeah, the company gets punished for wrongdoing, but the victims don't get made whole, which I thought was kinda the whole point of lawsuits as opposed to criminal proceedings.
Can you be Even More Awesome?!
AT&T is nothing but a bunch of fascists. I refuse to use them for anything. I wouldn't touch them for internet or cellular service .... if there was nothing else available, I would rather go without the service at all. AT&T stands for all that is reprehensible about a corporation and the way they willingly cooperated with the warrantless wiretapping is inexcuseable. Anyone that uses AT&T is simply helping them become even stronger. Since their terms of service changed, go ahead and run, don't walk, away from these a$$holes.
What if the class action is a federal suit?
Class action lawsuits are almost always a complete abuse of the legal system. They deliver huge multi-million dollar profits to lawyers. The "class" of plaintiffs usually gets a coupon or something worth less than $5. And the rest of us innocent people who just want phone service (or whatever) are forced to pay an extra de facto "tax" to cover the costs of the huge payout to the lawyers -- lawyers who are essentially free riders, who produced exactly nothing of practical value in return for the money they've taken.
In theory, class-action lawsuits protect consumers. But the current system harms consumers much, much more than it helps us.
putting terms into contracts that prevent/prohibit constitutional usage of rights by citizens ...
i never heard this thing in any other country, except african countries that are run by dictatorships. BUT, somehow, corporations do this in america, and not only they do not get their ass fined by constitutional courts, but also get away with it and even win cases.
please, noone give the 'great american system' bullshit to anyone, anymore. that kind of crap is unheard of. you dont have a fucking system, only something that enables big ass money holders to crample individuals and citizens.
Read radical news here
> If your State allows a ToS to ban class actions, change your laws.
I'd love to, but I'm pretty sure that AT&T uses the money it extorts via unfair and unconscionable contracts like this to pay lobbyists to ensure that my congersscritters allow them to screw us.
If you do not like the contract, do not do business with AT&T. You've got a choice. They're not selling you something you need (air, food, water, shelter).
So you're telling me that this might not be legally binding?
Random Thoughts From A Diseased Mind (Not For Dummies)
I thought that the U.S. Supreme Court had already decided that AT&T couldn't force people to use arbitration [sfgate.com]?
Isn't AT&T just putting these things into their terms of service to prevent people who don't already know their rights from exercising those rights?
Creating terms of service which contain legally-unenforceable clauses should be illegal. Attempting to confuse people out of their rights is unconscionable, and AT&T should be forced to immediately create and distribute TOS not specifically mandating arbitration.
But because of their previous abuse of TOS, it would be good if their new TOS were mandated to include articles outlining that users do have the legal right to sue them and do have the legal right to participate in class-action lawsuits. This would discourage such abuses in the future, both abuses by AT&T and by other companies which may want to use similar misleading tactics.
Can't speak to DSL but back in the day there was some flaky (X.25) CSUs out there that would start having problems and get fixed, temporarily anyway, by running a line test. The reason was that the test required putting them into loop back mode and then switching them back which reset the connection.
Wow, Mister Xiado, how'd you come to that conclusion? Wanting an iPhone, and as a result, being tied to AT&T makes one an moron/idiot?
Because only a moron/idiot would feel that they MUST HAVE an Iphone(Doesn't look so hip with proper capitalization, does it, fanbois?). Besides, it would be much better to get an unlocked Iphone. That way you don't have to agree to the ATT terms in order in use it.
Thanks for the reply. Not that any of it makes any sense to me. :) But if an AT&T tech had said something to that effect, it would have saved me running all over the internet looking for an explanation.
Innovation makes enemies of all those who prospered under the old regime... -- Machiavelli
More and more as time goes on, that AT&T really doesn't care at all about the average customer, and more so about it's larger corporate clients. I mean, I live in another country, so I'm not directly affected by this kind of stupidity...but at this point, I simply would leave AT&T and go to another carrier. The reason they continue to abuse their customers is because it hasn't proven to cost them any kind of profit loss. Stop spending money with idiot companies America.
Sure you can. Just write that into a binding contract that both parties agree to.
Um, that's kinda the point nonewmsgs was making. Can you make such a contract that is actually binding? Just because a contract has been understood and agreed to by all parties does not make it binding.
The binding isn't even tight enough to keep from being loosened and re-tied by one of the parties.
I am not a crackpot.
A company can put whatever it wants on a page and call it a "contract", but illegal contracts are not enforceable.
I'm not sure how it works in other states.
Here's an excellent column by am Martens about this arbitration business. Judicial Apartheid
Wansu, th' chinese sailor
Material here doesn't relate to an item ("physical matter") but to "something that matters," i.e.something of consequence. In other words, if the adverse terms have no actual impact (let's say they increase the fee for text messages from five cents to ten cents but you're already on the unlimited text message plan for the life of the contract -- that's adverse, but it has no material impact upon you) you might not be able to get out of the contract. But if they demonstrably matter, even if it's something that shouldn't affect you unless you are a nutjob (unlimited text messages goes from "unlimited" to "may be limited at carrier's discretion to 9999 per month") then you should be able to opt out.
There are two kinds of people: 1) those who start arrays with one and 1) those who start them with zero.
Comcast did not come from the split up of AT&T (otherwise I would own lot more share of Comcast). The split went to the "Baby Bells", which were Ameritech, Bell Atlantic, Bell South, NYNEX, Pacific Telesis, Southwestern Bell, and US WEST being created. AT&T still existed after the breakup as well. Verizon was formed when Bell Atlantic merged with Ameritech. Southwestern Bell, eventually changed their name to SBC, who later bought Pacific Telesis, and later then bought AT&T Corp (and changed the name from SBC to AT&T Inc since AT&T carried the bigger name, even though it was the loser of the takeover), and finally purchase Bell South.
So recap, AT&T, split to 8 companies, then years later when the government stopped their regulation and allowed free market forces to dictate, those 8 phone companies consolidated into 3 companies, AT&T Inc, Verizon, and Qwest (Qwest formed from US WEST). Don't be surprised when further consolidation occurs. The only good thing going right now is that Verizon is primarily located on the north east, and Qwest is obviously in the mid-west/western side of the country with AT&T covering the entire middle and southern portions of the country. Verizon and Qwest are less likely to merge due to this large physical separation.
We were all warned a long time ago that MS products sucked, remember the Magic 8 Ball said, "Outlook not so good"
Think of them as a kind of privatized law enforcement. In place of a prosecutor going after a defendant for ripping off millions of people, a plaintiff's attorney does the job instead.
You'll find abuses in both government law enforcement and private law enforcement. The difference is that in the case of class action lawsuits the people who want to get away with illegal activity have powerful and well-oiled propaganda machines.
This is where unfettered capitalism actually ends up:
http://en.wikipedia.org/wiki/Ludlow_massacre
That said, a totally free market is impossible without eliminating any and all power discrepencies between agents within the market. What most people who say they want a free market actually want is a market in which they are free to exploit anyone and everyone without any sort of legal oversight.
However in many markets there are a small number of suppliers who know that they can dictate any terms that they like since their few competitors are just as bad and it is almost impossible for a new entrant to come in giving the consumer a better deal. This is the sort of situation where the government ought to step in and regulate contracts; I propose that:
when a provider of services to the public has more than 10% of a market[**] that their contracts be drawn up by some independent body that is charged with ensuring that the agreement is fair to both parties.
They won't like it, but it is the only way that we can stop being shafted by the large corporates.
[**] They may provide 5% of the national market, but if they provide >10% in a small region that would be sufficient condition. To be fair we need to say that this only applies when they have at least 1,000 customers.
The law DOESN'T allow that. Just because they say so, doesn't make it the case. I can write whatever I want. I can say "By reading this post you agree to send me $100 per month for the next 20 years. You also agree you can't file a lawsuit against me, etc, etc." That's fine, none of it matters. You can ignore it. Just because I wrote it doesn't mean it has any legal force. That I claim "You agreed to it," doesn't change anything. Even with actual, signed contracts there are things you can't do. If I put a clause in a contract that has you sign yourself in to slavery, it'll be ruled invalid. You can't sign yourself in to slavery.
So this isn't indicative of a problem with the system, it is indicative of companies being stupid. They want things to be a certain way so they are trying to make their TOS say it is that way. Ok fine, but that doesn't mean it has the slightest bit of legal standing. In particular, shit like this has already been struck down in other cases.
ALL YOUR BASE ARE BELONG TO US.
Since they're the evil masterminds of cellular telephony specifically (among other things), wouldn't that be
ALL YOUR BASE STATION ARE BELONG TO US
?
I might as well push that joke to the limit...
Since it's telephony, the phrase "YOU HAVE NO CHANCE TO SURVIVE" absolutely has to be followed by
MAKE YOUR MONTHLY MINUTES
Schwartz v. Comcast also found to be invalid in Pennsylvania. And I believe it's also invalid in Washington and California.
upon the advice of my lawyer, i have no sig at this time
When you have a contract with AT&T and they modify the terms, the law permits you to reject the terms - in writing. If you reject the terms, the company can do one of three things: they can retain you as a customer per your original agreement, attempt to personally negotiate mutually acceptable terms (not likely), or terminate the agreement. If they terminate the agreement, you cannot be penalized. So, if you just got a shiny new iPhone, it's yours. Sure, you have no service, but you just got your phone on the cheap.
That said, while it makes for a nice contract clause, there's precedent that placing limits on customer's legal options isn't binding. In fact, generally speaking, arbitration clauses are increasingly less effective. The idea being that no party can enjoin another against the protection of the law. It's no different than saying, "if we do something illegal, you cannot call the police and report us." Certainly, they can try. What this clause does is create a cost-barrier to relief. Sure, it probably won't stand up in court, but you're going to have to go to court with pricey lawyers and waste time and money just to get as far as filing suit. That's what arbitration clauses do too -- even if the court decides that the arbitration clause doesn't apply, getting that far is outside the means of your typical customer. It's called gaming the system. Justice is very expensive.
Its a good thing that "MY" terms of service (written down on a bar napkin years ago, and may be subject to blurring due to beer spills) bar any restriction on my ability to seek restitution or damages from any service provider whose terms of service require arbitration and/or prevent participation in class action lawsuits against them.
... from when i first scribbled them down and made them public by vocalizing them to anybody at the bar who cared to listen.
I gave all my service providers 1 year to make known any problem they had with my terms of service
I should also mention that my terms of service require arbitration and prohibit my service providers from participating in a class action law suit against me. Oh. And they have to bring me the number of that cute barmaid from across the room, too.
"Glory is fleeting, but obscurity is forever." - Napoleon Bonaparte
And would do it again if I still used them as an ISP.
I can't believe people still put up with this kind of behavior.
My DSL has experienced these local solvable issues.
1. Lots of intermittent line failure. The wire from my DSL modem to the wall corroded. A look using a magnifying glass showed significant corrosion of the four wires that plug into the wall. A new cable from Fry's fixed this.
2. My DSL modem. Netopia if you want to know. Fails occasionally.
2A. When its working go to DOS and find the modem's address.
DOS
nbtstat
Default Gateway . . . . . . . . . : 172.32.0.254 (get this ip address)
2A. I have a staple to reset via that hole in the back of the DSL modem.
2C. I type http://172.32.0.254/ which brings up a little web page from
the DSL modem I go to the setup tab and type my DSL modem's userid
and password. Your modem may vary.
Hope this helps!
2A that's NOT a staple but a straightened out paper clip. I use this to poke it into the reset hole in the back of the DSL modem. This erases the stored userid and password.
It should be illegal to attempt to impair someones rights to protect themselves in a EULA or any other form of contract. Puting that in there is equal to say, we have the right to screw you and you have to accept it.
The first time I signed a cell phone contract was also the first and only time I've been denied the right to possess a copy of that contract.
I want a hand-held scanner with internal memory that only needs to be tethered to a computer to retrieve the scan after the fact. Preferably one that can pass for a reading light so they won't know I just copied their contract for my later perusal.
Oh, say does that Star-Spangled Banner entwine / The myrtle of Venus with Bacchus's vine?
How can a term within a contract survive the termination of the contract itself?
ELOI, ELOI, LAMA SABACHTHANI!?
for, the social environment you live in is the creator of your circumstances. as long as the equation of freedom with the 'i can do whatever i want with money' bullshit continues in america, you will end up in the same situation regardless of where you nuke and start over. you have to change the mindset, and drop the 'money is success' and 'money makes rights' stuff.
Read radical news here
It's in print in the contract as well as the Customer Service Summary you get with the start of service. ALL billing disputes are to be submitted in writing to a provided address within 90 days, or 100... But anyway, customer support fields billing issues because NOBODY reads the terms of service. Hey, just like EULAs.
AT&T doesn't bother enforcing much of what they have in the terms of service unless the customer is being a collossal asshole. Seriously. I've seen thousands of dollars in charges forgiven in one instance, mainly because it was a simple case of the customer not being aware that using an iPhone without the mandatory data bundle would result in utter financial ruin.
I'd be more than happy to directly quote the sections of the ToS that I referred to, but alas, I'm posting this from an AT&T BlackBerry, from within the belly of the beast. I'm certain all of this information is available on the public website, but my lunch is almost over.