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AT&T sued for over-billing iOS users

Written by Andre Yoskowitz (Google+) @ 01 Feb 2011 18:02 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."

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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 0:51

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.

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