AT&T Sued For Systematic iPhone Overbilling
Hugh Pickens writes writes "UPI reports that AT&T is facing a lawsuit that says AT&T routinely bills for 7 percent to 14 percent more data transactions than normally take place, which could blossom into a costly class-action case. Court papers claim that attorneys set up a test account for an iPhone, then closed all of its apps and left the device unused for 10 days. AT&T still billed the account for 2,292 KB of usage. 'A significant portion of the data revenues were inflated by AT&T's rigged billing system for data transactions,' say court papers filed on behalf of AT&T customer Patrick Hendricks. 'This is like the rigged gas pump charging you when you never even pulled your car into the station.' Attorneys say they would file to have the case moved to class-action status, which makes the outcome relevant to all of AT&T's iPhone accounts."
Nothing in the article shows how it couldn't have been the phone itself doing it, not AT&T doing it. If the device is ON, but not being used, well, there's a lot of shit that goes on in the back-end of things, like update checking, etc...
you have RTFA
Like anyone can even know that
Tfa didnt say how much data was transferred during that period (or was that 2 megs pulled totally from the hat). Not having ever used an iPhone I suppose there is some sort of a counter you can reset to see how much data is transferred. Is the all apps off supposed to stop all activity or is there still some background programs accessing the data network occasionally?
It uses data trafic.
BTW I assume that they had turned off e-mail checking, of course.
I'm eager to see how this gets settled. I'm betting AT&T will offer a discount to any customer that wants to renew their service by signing up for another two year contract. Oh, and the law firm behind this suit will get $30 million.
you have RTFA
Well, via Apple Insider I found a more complete detailed account with AT&T's response:
"Transparent and accurate billing is a top priority for AT&T," an AT&T representative has responded, speaking with MacNN. "In fact, we've created tools that let our customers check their voice and data usage at any time during their billing cycle to help eliminate bill surprises. We have only recently learned of the complaint, but I can tell you that we intend to defend ourselves vigorously."
It is odd that it seems to only be reported by iPhone and iPad users.
My work here is dung.
I'm calling B.S. I had an AT&T iphone, and even with full bars and every internet app open it takes WAAAAY longer than 10 days to download 2,292 KB on their network.
-Inigo Carmine
Unless they've been sniffing all frequencies on which the iPhone can exchange data, how can they be sure there haven't been any data transfers? That is why I wouldn't even consider a data plan with per-volume pricing. To all you metered internet fans who fear that unlimited plans will result in congested networks: THIS is what metered internet gets you.
Turn D2 on, then off, then on again. Only way I got it to work... D2 off doesn't work at all any more.
To be fair, D2 has been improved massively.
"Lawyer leaves iPhone in other pants for a week, gets $20 bill, can't comprehend background services, sues."
UTF-8: There and Back Again
If they really want to prove this they'll need to operate some kind of traffic meter on the iPhone itself, and compare that to what is reported by the carrier - but I suspect you'd have to jailbreak the phone to make that work.
And if you're going that far, you should monitor what services are generating the traffic - could just be service bloat on the phone which is no fault of the carrier unless they provide the specific build.
http://www.courthousenews.com/2011/01/31/AT&T.pdf
Slightly more informative article with a link to a PDF of the complaint: http://www.pcworld.com/article/218381/atandt_accused_of_overbilling_iphone_ipad_users.html
AT&T is Apple's partner and should be fully aware this happens. If it's a technical issue, there should be warnings and workaround, preventive measures. There is little info on how to prevent extra charges on the phones, for obvious reasons. I've also noticed many phones make it rather easy to accidentally dial numbers.
Build your own energy sources from scratch. http://otherpower.com/
Slashdot: Stop fucking around with basic HTML elements! The above has an OL in it. Okay, all you user style people, time for another entry in the "red pen" edition of Slashdot css:
.commentBody ul li
.commentBody ol li
.commentBody ul,
{
list-style: circle !important;
margin-left:25px !important;
}
.commentBody ol,
{
list-style: decimal !important;
margin-left:25px !important;
}
UTF-8: There and Back Again
Potential windfall of 18 cents for all AT&T iPhone customers!
It would probably take longer to talk to the customer service reps to get this sorted out (or waiting to talk to the customer service reps) for all these people.
Nothing in the contract, as far as I know, says that you only have to pay for data you purposefully transfer. The phone does all sorts of things in the background, such as checking for updates to software and e-mail, and these are completely normal operations. Leave a computer on for several days and you'll see a similar result.
and hopefully can keep it when I get my i{hone 5
Your basic phone fee should be covering the health and status traffic to your handset. That basic fee covers their fixed infrastructure and handset traffic costs. The advertising for metered data, and the consumer expectation, is that the 200MB (or 2GB) allotment is discretionary, whereas it appears that there may very well be a 5% or greater "overhead" you're getting charged for.
I've come close to my 200MB limit once, when I was on vacation and the hotel wifi was not free. I looked up all the "stuff" the familly was going to do on my phone, used it for maps, and generally spent a lot of time on the web while they rested between events. I didn't go over, but I would have had a bit more cushion if there were actually 10+MB of health/status transfers on top of my discretionary usage. (FWIW, I usually use about 60MB/mo; I use my phone for work so I'm constantly on email and calendars, but rarely stream anything)
Is it just my observation, or are there way too many stupid people in the world?
Carrier sells phone to customer.
Phone has s**twad of carrier apps that do 'update checking, etc...' to generate automatic traffic.
Profit! Profit! Profit!
As a quasi-ludite I have no cell phone, do you mean to tell me that automatic backround data transmissions and their potential impact on the bill are not stated up front in the contract?
I know this is about the iPhone but since I have my iPad data plan with AT&T... I had issues with my iPad. I had it turned OFF one weekend. I turned it back on and within 5 minutes I received an email saying my data plan had maxed out after 2 1/2 weeks into the plan (250MB). So I renewed the plan mid month. I wasn't sure what in the world I could have done to cause this as it'd never happened before. I only have two pages of apps, none had notifications turned on, none had 'allow location' , etc. My email was manual only when I'm in mail. I use the iPad when I'm at work to check email once or twice a day and I am sometimes on Yahoo IM. But rarely. I don't stream vids or play online games, etc. Other than that I use the iPad as an ereader and for Pages. No reason at all to cause such data usage. 2 weeks later I'm told my data is out AGAIN. I do a complete reset of the iPad and within 5 days, I received 4 consecutive emails within an hour, one said my data plan had only 20 MB left, one said 18, one said less than 10 and one said out of data. I called AT&T and they suggested I upgrade to the 2GB plan. I said that I had no new apps on the iPad, had done a complete reset, am doing nothing more than I've done with it since May, so there's NO reason for it to all of a sudden suck so much data. We checked notifications, we checked location services, email and could find nothing to cause this. We even called Apple Care. No one could find a reason. And LO! after my complaint to AT&T, I haven't had that problem again even though it's been almost 6 weeks. Even though we changed none of my settings, as they were already turned off. I find that a bit suspect. To their credit, AT&T was gracious enough to give me one month's free iPad and iPhone services 'for my troubles', which was rather decent of them as the gent on the phone heard how irate I was becoming.
How did they manage to turn on their iPhone and get a decent enough signal for this testing? I'm sure it helps that it was probably sitting on a table and not being held^d^d^d^dattenuated by a human hand, but still.
Wait a minute, lawyers are upset about systematic over-billing?
I'd say this is a "the pot calling the kettle black" moment, but it's more like "tar calling granite black."
I have no doubt that the lawyers will bill AT&T for every minute of those 10 days they "monitored" that iPhone...
Help! Help! I'm being repressed!
...but the phone shouldn't "phone home" at all. Period. Unless the user does something intentionally to make it do so. Otherwise you have a device made by a company that you bought that can just decide to inflate your monthly bill whenever it feels like it.
They left it alone for 10 days without any data usage ... what about the other 20 days of the billing cycle?...
Very bad experimental methodology. The guy needs to set up a control (phone off) as well as using more phones to try toget a better feel of what's causing the 3mb traffic.
Attorneys say they would file to have the case moved to class-action status, which makes the outcome relevant to all of AT&T's iPhone accounts.
It's always the same formula: Big company+lawyers+class action= law firm gets rich on billable hours and I get shit. Sure AT&T gets hurt which is a good thing but seriously there needs to be some sort of legislation on exactly how much law firms can charge when there is a class action suit. Then again I may not be affected as I'm grandfathered into an unlimited data plan. Oh well... Fuck AT&T.
"We are just a war away from Amerikastan. When god vs god the undoing of man." Dave Mustaine
maybe it's like cable arp packets and some cable systems count as part of your cap.
And the switching from AT&T to Verizon begins...
So, if Apple knowingly overbilled their customers and sent out bills to that effect, isn't that mail fraud? All you need is some thugs chasing Tom Cruise around and you could make a movie out of this!
Overrated Moderation: This posts sucks... because.
And that's not a compliment to the plaintiff.
The plaintiff makes essentially 4 claims for relief. They read like a tabloid expose, not what I'm used to from lawyers, stating fact and claims. "Rigged gas pump"? Number 3 in particular is a hoot:
"2. It gets worse. Not only does AT&T systematically overbill..."
Sorry, it gets 'worse'? Asking the court to consider any of your claims lesser than others doesn't seem like a recommended strategy. Making one claim 'worse' risks finding the others 'less worse'. Clearly, IANAL, but do I claim that when my car is forced off the road, it get worse when my coffee is spilled? Do I claim anything is 'worse'? Nope. It's ALL bad, and THEIR fault. Pay for it ALL, please, even the coffee. I don't want them settling the coffee dispute first just because it's 'worse'.
Sorry, this does look like amateur hour. He's got an interesting case and all, but it's written up like he was a heck of a hurry to get this filed, or was just so wee-wee'd up he couldn't have someone proof it and recommend some more eloquent and sane language. Even the gas pump analogy is a risk not to be taken in a complaint. At least one judge I've known would read that and snort. And give the plaintiff stink-eye. And she's a fair judge.
And he hired an 'independent consulting firm' to test data charges and metering? Not in that much of a hurry, unless he was beating a media deadline, and the media doesn't sleep any more. Weak.
Or am I just too used to attorneys waxing on ad infinitum?
ps- as a side note, I wonder what data billing would occur if you put your iPhone in a foil envelope for a few days. 'Phantom' data charges? My Android phone can't help it self from checking in despite no email or anything else. It's a feature to check for system updates. I do have settings to avoid data roaming and turn off sync, but I wonder if I can keep it from at least asking for a new version. I'm pretty cynical, and this suit looks like an opportunistic grab on the part of the plaintiff.
Ack. It's already a long day.
deleting the extra space after periods so i can stay relevant, yeah.
Ah, yes, nntp, one of the greats.
Of course, if you've set up your phone to be an NNTP server, you're pretty much asking for it in terms of bandwidth consumption.
Also, I think phones get their TOD from the cellular network, don't they?
2*3*3*3*3*11*251
Typical behavior from AT&T.
We have a full time employee at the small company I work for (less than 700 people) dedicated to nothing but billing verification for various AT&T services. We routinely report and recieve credit for thousands of dollars a month in overbilling. Our annual credits dramatically exceed even the HR weighted rate for the FTE.
Why would the mobile data billing be any better?
If you read the actual complaint there are three claims. One of them is that data services were charged for were data not requested and that seems to be the one that everyone is focused on. Maybe there's background services, maybe not. However, a better explanation is actually that there is only one issue - the last one in the complaint. This complaint is that charges are not always applied at the same time that the usage occurs. I know that this one is true - I've witnessed it myself, was penalized for it, then AT&T forgave the penalty (more on that in a second).
This billing lag could easily explain why data charges were incurred during a period of time when the phone was supposedly inactive.
My daughter recently got an iPhone with the 200MB plan. We were monitoring her data usage regularly and towards the end of the billing cycle we saw that she would go over if she continued with the same consumption. So she stopped using the data apps... she went over anyway and we were billed for $30 instead of the $15 we had budgeted for. After my daughter swore that she had not used the web in the last week, I called AT&T to find out what the deal was. I was finally able to confirm with a tech that indeed, some data activity might not be billed for days after the usage. He told me that he could confirm that my daughter had actually exceeded her limit a day or so before she ceased activity. AT&T was kind enough to drop the extra $15 since their tool had misguided us. I checked and as far as I can tell, AT&T makes no claims as to whether billing for services rendered occurs at the time of rendering.
It is too bad that there isn't a set of counters to provide information about data usage on each smart phone. Something one could use to form a basis for decisions about how to manage one's data over the network. Something simple that would collect information about network usage for management purposes.
Maybe someday smartphone vendors will provide such a tool. They could call the set of counters something like a Management Information Base, and they could name the protocol used to access these counters something like the Simple Network Management Protocol. Yeah, that's the ticket. SNMP with a smartphone data usage MIB.
The answer isn't to whine about what a carrier might or might not be doing, or how a test for data usage is flawed. The right start is to get the instrumentation in place so that everyone can know what the actual numbers are, and then use those numbers to verify billing and whatever else needs to be verified. SNMP agents are relatively small bits of code but can provide so much useful data. If smartphones that communication over a network don't have them already, why not?
$30/mo for 5GB data and $0.25/mb after with a $200 cap, or $3/day (~$90/mo) for all you can eat data.
Did the user also disable the pull checking of email?
...seems to be that the data counter built into the phone, accessible from General preferences under Usage, doesn't seem to agree with what the AT&T website reports.
For example, my wife and I just signed up for two $15 data plans and I dropped back from my $30 unlimited plan. I did so after checking the usage on my phone, which had never been reset since I bought the phone at the end of 2009, that said I had used approximately 1.5 GB of cellular data, 1.3G down, 0.2G up. The AT&T website, meanwhile, allows you to check your usage history; and in the same timeframe, AT&T routinely had me going well over 200MB/month, up to over 400 in recent months, well above the 1.5G the phone reports and well above the ~120MB/month average the total suggests. I questioned this, and the AT&T rep said okay, reset it at the beginning of the current period and compare it with the usage when it ends mid-February. Turning off cellular data results in the inaccessibility of visual voicemail, among other things...not sure why that HAS to go over cellular and not whatever happens to be available. It's no telling what else stops working when you take steps to limit your usage.
We're definitely keeping an eye on this situation and on AT&T. I just don't have any idea where their website is getting its data...the counters on my phone really ought to know how many bytes and over which interfaces they're moving. Why shouldn't I trust my phone, AT&T?
My data usage with my own iPhone 4 has been very predictable. What about push notifications, did he turn those off? Indeed... did he turn off all data services on the phone, or just shut down all the running apps? Push notifications still work while the app isn't running. Further, the phone keeps logs of its own data usage... Settings->General->Usage... there it is! Cellular Network Data. Did he reset those stats when doing his test and compare with his bill? Reset the phone's data meter at the beginning of the billing cycle and compare with your bill 30 days later and I'm sure they will match.
...nature of the filing, does anyone have complete confidence that any automated billing system is 100% accurate or that the system is designed so that when errors occur, they are always in the favor of the customer?
In a past life, I was responsible for a our Qwest billing (formerly Northwestern Bell). Our customer service record was like a stack of paper 40-50 sheets thick, and we weren't really that big of a company.
This leads me to believe that these systems, especially at older companies, are deeply complex and probably rife with errors, especially given the monthly death march deadlines to get billing out.
There's probably not malice involved, but even if there was how would you know it was malice without some low-level audit that exposed a variable named "$nonsense_charge_to_inflate_profits_and_exec_compensation"?
This also leads me to believe that these systems should be audited by a third-party not answerable to the company being audited and possibly with criminal penalties associated with billing errors that can be proven to be false and intentional.
Since when is 2,292 KB 7-14% higher than 0 KB?
"For every expert, there is an equal and opposite expert"
I'm no network guru but wouldn't showing the source of data resolve all of this? All data packets have identifiers, it would be nice to see what type of data along with the sum of total usage on my month bill.
I hope they lose big time, and the judge owning an AT&T cell phone, will throw the book, the kitchen sink, and an aircraft carrier at them for doing this, hopefully it will be in the hundreds of millions of dollars for fine that goes towards a fund....as it would be almost impossible for all the clients everywhere to get properly compensated, this would involve way too much accounting and billing, however if the fund was
going towards building hospitals or schools, or something more constructive, at least it would get a big boost!....
The cell co are doing anything they want, it is pretty sick here in canada...i do not know about the states, but i heard that we are even worst off then our southern counter parts.
I read the complaint and they complain that downloading a 50k file resulted in 53k of traffic. It seems likely that they did not account for the overhead(like handshaking,headers,retransmission of dropped packets, etc.) Based on that alone I don't trust that they know what they are talking about.
Unless the court lets them get away with certifying the wrong class, this shouldn't be relevant to all AT&T iPhone users, only those that have had at some point in time covered by the suit a data plan that is not unlimited. AT&T overreporting usage on unlimited plans doesn't have any effect on the people with those plans except to serve as a disincentive to switch to the limited-usage plans that AT&T really wants people to switch to (but not bad enough to drive off people with existing unlimited plans by not letting them renew them.)
Isn't it a known fact that apple uploads usage data late at night? Not to speak to Att's overbilling, but isn't it possible that the phone did actually send/recieve data without user interaction?
We can argue all we want about it, but the fact remain: without a data plan, in roaming mode. 1Mbytes is 11$ to 12$. Think about it. This is not trivial money. The fact is that the device is using the CLIENT's bandwidth to operates self supporting function. This uses is clearly significant, even if you do have a data plan.
It's like car maker turning on your car remotely in order to "check it" and use 10 gallons of gas every month to do it.
Don't forget that the iphone itself can wait until there is a WiFi available to do its own stuff.
There. Fixed that title for you.
This is a misinformed lawsuit that will likely go before a tech-unsavvy judge and jury and potentially win. And how will AT&T pay for it? With customer money - that's where businesses get their money, remember?
Another pointless lawsuit in America that makes everything more expensive to make a few lawyers richer.
Agreed. It would be interesting to know if they ran the same test with the data service actually turned off on the phone. Then I'd start to see fault with the carrier.
Airplane mode. It turns everything off, cellular, wifi, etc.
Nothing in the article shows how it couldn't have been the phone itself doing it, not AT&T doing it.
I see what you are doing, using product liability principles to shift responsibility from the data service provider to the merchants in the chain of selling the phone to the customer, starting with the direct seller and back up to the manufacturer.
While that potentially puts a other people on the hook, given AT&T's involvement in that chain, though, that doesn't exactly get AT&T off the hook, since in addition to providing the data plan, they also sell the phones.
Its only relevant if you dont have unlimited data....
---- Booth was a patriot ----
No apostrophes!
It's = It is.
Ant(Dude) @ Quality Foraged Links (AQFL.net) & The Ant Farm (antfarm.ma.cx / antfarm.home.dhs.org).