User Successfully Sues AT&T For Throttling iPhone Data
An anonymous reader writes "Matt Spaccarelli has won a judgement of $850 from AT&T for data throttling. From the article: 'Nadel's ruling could pave the way for others to follow suit. AT&T has some 17 million customers with "unlimited data" plans that can be subject to throttling, representing just under half of the company's smartphone users.
AT&T stopped signing up new customers for those plans in 2010, and warned last year that it would start slowing speeds for people who consume the most data. In the last few months, subscribers have been surprised by how little data use it takes for throttling to kick in —often less than AT&T provides to those on limited or "tiered" plans. Spaccarelli said his phone is being throttled after he's used 1.5 gigabytes to 2 gigabytes of data within a new billing cycle. Meanwhile, AT&T provides 3 gigabytes of data to subscribers on a tiered plan that costs the same — $30 per month.'"
It would be nice to think that rulings like this might have some effect on the traditional corporate practice of making new users sign "contracts" that basically give one party the right to change the terms any damn time they want and in any damn way they want, while giving the other party the right to pay their money and shut up. It would also be nice to think we may live in a country some day where consumer protection laws will actually be geared towards protecting *consumers* and not just the corporations who write all our the laws in the U.S., making these kind of rulings unnecessary in the first place.
Of course, while I'm dreaming, I had may as well wish for a threeway with Katee Sackhoff and Natalie Portman in my new Ferrari.
SJW: Someone who has run out of real oppression, and has to fake it.
They claimed they needed to limit usage on their network, so they throttled users. What they forgot was the part where they're supposed to compensate the affected users for this.
I wish they couldn't get away with this in the UK... at least as far as advertising standards goes, "unlimited" can mean anything as long as the company can claim that the majority of users don't run into the limit, it seems.
Is AT&T now an LLC? How can that clause hold up?
I am Bennett Haselton! I am Bennett Haselton!
Can you imagine if you went to rent a car that advertised unlimited mileage that had the same contractual caveats that unlimited data plans have. Your conversation with the agent might go something like this.
"Yes you do get unlimited mileage but if you drive too much then the car will slow down and only go 5 MPH."
"Well how much is too much?"
"There is no set amount, it varies by how much other people are driving. It is only the top 5%"
"Then how am I supposed to know if I am driving to much?"
"Well there is really know way to know, just try to drive as little as possible and you should be fine."
I don't think anyone would stand for that kind of car rental contract.
I have an "unlimited" account with GoDaddy and I recently got some nasty emails saying I can't exceed 500,000 files on my server.
After scrambling to find a way to place the data in SQL servers, I find out that each SQL database is limited to 1GB.
Unlimited my ass.
The customer contract specifies that those who win an award from the company in arbitration will get at least $10,000. Spaccarelli picked the same amount for his claim. Judge Nadel instead awarded him $85 for each of the 10 months left on his contract.
Er, what part of contract law does this Judge not understand?
What one fool can do, another can. (Ancient Simian Proverb)
But it's the sales they need to be throttling, not the use.
OMG. They lost in small claims court where they were represented by a local manager. I'm sure AT&T is expecting this "judgement" to really threaten them.
My ISP did not upgrade my dsl speed to what a new user would get. I noticed one day while looking at their data plans that I was not getting the 3mbits I was supposed too, far from it in fact 700kbits. I had to call them and have them and tell them to increase it. I think that says a lot about the industry.
I get 5GB per month plus free Wifi HotSpot tether for only $30 a month. They may not have iPhones, but who cares if it's going to cost a fortune to use it.
-- By all means let's be open-minded, but not so open-minded that our brains drop out.
I have an unlimited plan on my phone and so far I have not been throttled. I also have a 2 gig plan for my iPad. Last week I subscribed to Clear, now I have a mobile wifi hotspot. In my area the coverage is pretty good and I can hook up to 8 devices up to it. As a result I am canceling my iPad data plan. In short, even though I wasn't directly affected, I am dropping their service.
I wouldn't have even looked into Clear if they hadn't started messing with their customers.
"I like to lick butts!" by MobileTatsu-NJG (#32700246) (Score:5, Informative)
Either AT&T is false advertising, or people are confused as to what "unlimited data" means.
You can get unlimited data and still be throttled. Those are not contradictory. In fact I'm on T-Mobile's prepaid plan, $30 and I get "unlimited" data. But guess what, they clearly state that it's unlimited and only up to 5 gigs of it is at 3g speeds. I understand this, and agree to it.
So someone with a clear head please explain, is this just bullshit whining of people who don't understand that there is no _speed_ component in the phrase "unlimited data" and it's perfectly legitimate to throttle at some point as long as it's disclosed, or is it truly AT&T advertising unlimited data at guaranteed 3g or 4g speeds?
2gb?!?
Do they know that just downloading ONE DVD requires 8gb?!?
"I am altering the deal. Pray I don't alter it any further."
VERY naive... witness what Sprint has done this past year... MULTIPLE changes that affect the bottomline, i.e. what the customer actually has to pay or what the customer actually gets in the way of services, discounts or equipment upgrades. HOWEVER, Sprint merely says "these changes are not "material"". They are not changes to the contract, and therefore not grounds for leaving ETF-free. Furthermore Sprint says, "if you disagree, tough. You CANNOT sue us as a class action. Your ONLY recourse is arbitration or small claims court." and the kicker "We INVITE litigation". Oh and about arbitration, Sprint change the rules as to how the arbiter is chosen: Sprint gets to choose and it chose a pro-corporate arbiter that it pays (can we say "conflict of interest")...
IANAL. That being said, they may claim the changes are not material but that doesn't mean anything. Any change to the service agreed upon in the contract that results in an increased cost or decreased service would be "an important part of the instrument" and therefore constitutes a material change.
In other words, they can say whatever the heck they want, but if you take them to court (small claims or otherwise) they will lose.
http://legal-dictionary.thefreedictionary.com/Material+Changes
http://legal-dictionary.thefreedictionary.com/instrument
Maybe I am naive about this whole thing but I believe any type of conflict of interest renders somebody as "not an arbitrator." I mean the real problem with what they did is that you would have to fight a dozen battles to win, even if you could. You would first have to challenge each "arbitrator" until you actually find one that can fit the task.
Okay, this is the 170's time I've seen this.
Everyone, can we do Venn Diagram 101?
Smartphone is a Hardware Object.
Smartphones are *Correlated* with Nasty Data Plans. But it's not quite a 1-to-1.
Enter: iPhone on AT&T's GoPhone Plan. No Data Plan at all. Just buy minutes/text. Then you go to any McDonald's to use their Wifi free for data.
End Of Line.
My first Journal Entry ever, in 8 years! http://slashdot.org/journal/365947/aphelion-scifi-fantasy-horror-poetry-webzine
I used to have a Sprint phone under contract. They upped the monthly cost less than six months after I signed the contract and I told them to piss off. They said the change wasn't material and charged the early termination fee to my credit card. I explained the situation to my credit card company and they reversed the charge and told Sprint to piss off. Sprint pissed off and never bothered me again.
There's nothing naive about my post. I simply refused to take "it's immaterial" as an acceptable response and I know how to deal with companies that do shit like that.
They will absolutely try to claim that the changes aren't material (Sprint did this to me). Your credit card company will have no problem reversing early termination fees if they try to charge them and your cell phone provider isn't about to piss off their main source of cash by arguing about a couple hundred dollars.
Nope. I just had to have my credit card company reverse the early termination fee when I did this less than six months into a contract with Sprint when they upped the monthly fees.
If you read any cellular forums, you will see many many stories about people getting out of the EFT and canceling for any change except for the government mandated fees. They try to fool you withe the cost recovery fee they charge, they add to it and hope you don't notice but it is still a change and you can get out of your contract because of it.
That's like pulling your battery out of your laptop and throwing it away. Yes, the device will still . . . do stuff. It just doesn't do everything it's supposed to.
Oh, and that extra functionality you're cutting out? It's one of the primary purposes of paying more money for a smaller, slower device.
The only thing is, as a Sprint Customer, I can say these changes they've made do not apply in California as California has already ruled on the state level that an ETF is ilegal and tantamount to "Adhesion". As to class action status and the requirement to go to arbitration, that also is not legal in California as you can never give up your right to pursue legal remedies. That aribtration clause has been thrown out of our contracts as a requirement though they can insist on it as it reduces the case load upon our court system.
Mod me up/Mod me down: I wont frown as I've no crown
Good to you standing up to telcos GrumpySteen.
Last year I got out of a contract for two phones with Vodafone. The service they were providing was woeful - hardly able to get data access at times. They made the mistake of sending out a letter from their CEO apologising for the bade service and saying it was because they were too successful (i.e. had sold more capacity than they had). I used it as a trigger to get out of the remaining 8 months of both contracts. It did take a few emails and a complaint to the Australian Telco ombudsman though.
If we all act less like sheeple there would be a whole lot less of this shit about.
Enter: iPhone on AT&T's GoPhone Plan. No Data Plan at all. Just buy minutes/text. Then you go to any McDonald's to use their Wifi free for data.
If only. Pretty much every cell phone company in the country requires a data access plan if you have a smartphone. No opt-out, even if you didn't buy the phone from them.
Bout fucking time.
This signature has Super Cow Powers
The only thing is, as a Sprint Customer, I can say these changes they've made do not apply in California as California has already ruled on the state level that an ETF is ilegal and tantamount to "Adhesion".
The decision was for the specific contract signed by the people who took part in the class action suit. Sprint has corrected their contract since. Sprint even made the ETF prorated (the ETF amount depends on how long you have been with Sprint), after this law suit.
So, if you signed up for sprint after they had corrected the contract wording, they can still collect ETF. The concept of ETF is still valid in California. Just use you imagination, how do you think people would reach if they can buy a phone cheap and get out of contract, without paying an ETF.
Your ONLY recourse is arbitration or small claims court." and the kicker "We INVITE litigation".
Then take them to small claims court. No lawyers, no lawyer fees, and more likely to side on your side.
I'll see your If Only and raise you the Anecdote. I bought my iPhone "in the usual way", had it for a few months while I used the full strength plan, then just canceled the plan and paid about a month's worth as the termination fee (but cheaper than retaining the other 8 months of the plan!). Then he rep at the AT&T Store just switched it over. She did warn me it was unusual and creative and he/she wasn't sure it would work, but here I am and there it is. I now have all the fun of the hardware without the data plan.
My first Journal Entry ever, in 8 years! http://slashdot.org/journal/365947/aphelion-scifi-fantasy-horror-poetry-webzine
Your analogy isn't quite right. We don't pay $80/month for batteries. It's that ominous slow financial drain that's the issue for me.
Oh, and I live a quiet life, so at home I do comp stuff such as this on my desktop, work has Wifi as well, so it's the "third rail" scenario when I'd "theoretically" want a data app out and about - so then I simply plan to go somewhere that has it. I'm not a crackberry exec so the times I *haven't* wanted Wifi but been unable to get there are very rare - hasn't happened for about a year.
Worth it to me to save about $800 a year in phone fees.
My first Journal Entry ever, in 8 years! http://slashdot.org/journal/365947/aphelion-scifi-fantasy-horror-poetry-webzine
Where I live near Dallas, Texas, throttling would have little effect since their service is so darn slow anyway. It's the most inconsistent service I've ever had. Just try and SSH into something from the airport in Miami. You can't keep a connection long enough to log in. It at least worked in Puerto Rico.
I'm impressed. I thought AT&T's network throttling plan was called being on AT&T's network. Out in the sticks where I live, you're lucky to get voice across it. Sprint's coverage is spotty out here, but at least I can usually take a call with them. Sprint's not too bad either, as long as you never have to talk to their customer service (God help you if you ever do, though...)
I'm trying to teach myself to set people on fire with my mind... Is it hot in here?
Sprint can put anything it wants in its contracts, but if there are sections that are clearly not in compliance with federal or state regulations it doesn't matter what they say.
Landlords use this tactic often, introducing ridiculous clauses into their tenant's leases that would never hold up in court. But because most of us don't know the law, or think "if it's in the contract it's binding," these landlord's know that they'll get off most of the time.
Sprint should have had to pay you damages in excess of half a million dollars for their flagrant violation of your rights. If that would happen, they wouldn't play games like that.
Yup! I did the exact same thing with my G1 (First Android phone) and it worked swimmingly. Cheap plan plus Wifi, I never felt like I was missing out on "All the phone had to offer". Sure, I WAS missing out, but the things I was missing out on could wait until I got to a Wifi zone.
Be sure to write to your state's AG, get enough complaints against a company and he may jump on the chance for popular headlines. He isn't subject to arbitration clauses.
My webcomic
I feel that data throttling and data capping constitutes internet overcharging. In particular, AT&T and other ISPs (Suddenlink, Cox, Comcast, etc.) are now capping user's home internet usage at amounts like 150gb a month (which doesn't roll over). I think this is outrageous. Inspired by the petition which stopped Bank of America from their $5 monthly fee for using an ATM card, I have created a petition to stop data capping. Please see it at http://www.change.org/petitions/stop-data-capping