AfterDawn: Tech news

AT&T sued for over-billing iOS users

Written by Andre Yoskowitz @ 01 Feb 2011 6:02 User comments (6)

AT&T sued for over-billing iOS users AT&T has been sued this week for over-billing iOS users by 'systematically overstating' the data use of iPad and iPhone owners.
The class-action suit was filed by Patrick Hendricks who says a third-party consulting firm studied AT&T's data billing practices for 60 days and found that some users have their usage overstated by 7 percent, while others had it overstated by 300 percent.

Reads Hendrick's claim (via EW):

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 e-mail 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. This is like the rigged gas pump charging you when you never even pulled your car into the station."




Hendricks also says that the overcharges have a "significant impact" on the company's bottom line, which is misleading to investors. In the Q4, AT&T revenue increased $1.1 billion thanks to 4 million new subscribers.

"A significant portion of those data revenues were inflated by AT&Ts rigged billing system for data transactions," reads the suit.

AT&T would no comment except to say "I can tell you that we intend to defend ourselves vigorously. Transparent and accurate billing is a top priority for AT&T."

Previous Next  

6 user comments

11.2.2011 20:38

WOW! I hope a lot of people find out about this



21.2.2011 23:03

now that funny

32.2.2011 00:51

Wow, Apple really lucked out with the timing of the Verizon iPhone; something tells me that this will not help AT&T iPhone sales.



42.2.2011 13:43

I wonder how this will turn out. I used to have AT&T over 2yrs ago when the iPhone 3G first came out and canceled my service and contract after a year because of their obscenely high prices. Paid the hefty early termination fee and just last month received a letter in the mail saying I owe them even more money!

As far as phone US cell companies go, they are the greediest and stingiest (with Verizon in a close second). Hopefully they lose a lot of money and have to refund their customers for this.

53.2.2011 10:03

I'm rather curious how the rest of the cellular carriers fare under the same scrutiny. Luckily, my Sprint account has truly unlimited data, so "over-billing" me for data usage simply doesn't happen, but not ALL Sprint plans are unlimited, and the other carriers... Well, I doubt they're much "purer" than AT&T.

This message has been edited since its posting. Latest edit was made on 03 Feb 2011 @ 10:03

64.2.2011 16:17

Sprint user here to. I find this rather......."funny" I know what my bill will be every month. Never an overage. I wonder how long this has gone on. Was always funny how ATT always seemed to have alot more advertising money then other competators. Guess it could have just been they had a larger advertising budget though.

Comments have been disabled for this article.

Latest news

Guide: How to Kick Unwanted Guests from Your Netflix Account Guide: How to Kick Unwanted Guests from Your Netflix Account (26 Jan 2023 2:14)
Sharing a Netflix account with a person in a different location is possible and indeed very common, although the company doesn't necessarily enjoy this behavior from their customers. However, ....
1 user comment
Guide: Turn an Old Computer Into a Chromebook Easily and for Free Guide: Turn an Old Computer Into a Chromebook Easily and for Free (07 Jan 2023 2:11)
Do you know someone whose computer is way beyond its best-before date, and they, unfortunately, do know have the skills or the expertise to do much about it? Or do you own a pile of old laptop ....
3 user comments
How to Choose a Robot Vacuum? How to Choose a Robot Vacuum? (07 Jan 2023 9:12)
Robot vacuums are meant to make day-to-day life easier in several ways. When they are used efficiently, they can keep the house clean continuously - at least when it comes to floors. In addition, ....
4 user comments
Tech year 2022 wrapped up: The rise of the AI, EU to become the much-needed counterweight to tech giants, ... Tech year 2022 wrapped up: The rise of the AI, EU to become the much-needed counterweight to tech giants, ... (01 Jan 2023 2:11)
AfterDawn's wrap-up for the tech year 2022. The rise of the artificial intelligence was probably the most significant change that occurred during the year 2022, but there were many other interesting developments, too.
2 user comments
OPPO to follow Samsung, OnePlus: Promises 4 Android updates, 5 years of patches for upcoming flagships OPPO to follow Samsung, OnePlus: Promises 4 Android updates, 5 years of patches for upcoming flagships (21 Dec 2022 3:45)
OPPO has updated its official Android update policy. Phone manufacturer now promises four major Android operating system updates for its new flagship phones.
4 user comments

News archive