Lawsuit claims AT&T iPhone, iPad billing is ‘like a rigged gas pump’

By on Feb 1, 2011 at 12:04 PM
Services February 1, 2011

A complaint has been filed in a federal court in California alleging that AT&T regularly and purposely overcharges iPhone and iPad customers on capped data plans by inflating the amount of data they download to their devices. The complainant, Patrick Hendricks, says that AT&T adds “phantom traffic” to its invoices in order to overcharge users. “AT&T’s billing system for iPhone and iPad data transactions is like a rigged gas pump that charges for a full gallon when it pumps only nine-tenths of a gallon into your car’s tank,” the complaint alleges. Hendricks’ lawyers hired a consulting firm to investigate the matter, and it apparently determined that AT&T regularly balloons data activity by between 7% and 14% — adding that the carrier sometimes overstates data totals by as much as 300%. AT&T said it would fight the lawsuit “vigorously” in a statement to Computerworld.

[Via 9 to 5 Mac]

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44 Comments

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  • Bringit

    hi.

    • Jennie Zebru

      Not yet, but im working on it!

  • Gjj

    WTF!!!! If you can’t afford why buy. Ppl these days cry too much. It feels like depression really hit this economy.

    • QNX Please

      Its Western Culture man, who really cares if you can afford it or actually need it… Its all about whether you want it, if you want it, there is always room on the credit card. Then these same people complain when the bank calls their debts, or that the government isn’t doing enough for them. Personal accountability got thrown out the door a long time ago.

      But onto the actual article, if this guy can prove AT&T is over inflating data usage then he’s got one hell of a case that will cripple AT&T, no wonder AT&T wants to vigorously fight it.

    • Hikaru

      Its for the principle. I guess you don’t mind fraud. Companies must love you.

      • Anonymous

        Well said dude…the guy never said he had a problem paying his bill, he just dont want to pay for overages when he didnt go over his limit…just because u like to bend over and take it (Gjj) that doesn’t mean everyone should enjoy being screwed like apparently u do…if there is foul play i have no problem fighting the good fight…all the power to u Patrick (assuming ur not just crying wolf.)

    • http://www.facebook.com/profile.php?id=1422202148 James Lemon

      Excuse me while I steal from you.

      Please no crying.

      I hope to god you aren’t in any position that allows you to make decisions…

    • Boo Boo

      Spoken like a true thief: “Give me your wallet or I’ll shoot… oh and quit whining about it!”

    • Drew

      What a stupid ass response. You might want to crawl out from under your rock every so often to find out what’s going on in life. So, you’re saying if you find that your mechanic shop has “erroneously” overcharged you and everyone else repeatedly for a brake job you should just shrug it off and say “If you can’t afford why buy”. If you can’t afford what?? Being overcharged?? STFU

    • Rob

      Wow, post of the year. The guy went full retard. Hey, we got a fella who doesn’t mind be robbed if he CAN afford it!

  • Hikaru

    I believe this. My bill personally at att had data on it even though my phone had been off with battery completely dead for over two months. Yet my bill still claimed I had used 32 kb of data. WTF?

  • Brett

    This is probably from rounding at a more convenient place than 5 decimal places.

  • Anonymous

    Doesn’t make sense… this guy is a attention whore looking for a quick buck.

    Data caps aren’t in place to collect overage fees. They exist to deter use annoy overload a shit network.

    Overages mean more calls to Cust service which costs money and lower Cust satisfaction, which means people porting out, which costs money.

    Dumb lawsuit

    • BrownGuy

      And what cell company are you a spokesperson for? Sounds like ur on the company $

    • http://twitter.com/netposer net poser

      You are wrong. Data caps are put in place for the carrier’s bottom line. They want you to pay $15 for 200 MB knowing with moderate use you will easily go over that.

      If it was to help “network congestion” they would allow roll-over bits or use higher caps. Like 500 MB which would work for most better than only 200 or 150 MBs.

      • Blog Retards For Life

        Wrong. The low end data plans (low end everything) are in place to get more data revenue by making it easier to access the plans. Don’t you think there is a similar logic behind Apple keeping the 3Gs around @ the $99 price point?

        It’s basic business man. If you knew anything, you would see how it works.

    • Glennhill81

      Man oh man…what a people-pleasing yes man you sound like. Please AT&T “take all my money”…I’ve still got some left. It takes guts to stand up for what you believe…so a guy gets tired of a monolithic (that means “big” Einstein ) company ripping him off…and you go all sissy-ass and take-up for them. You probably work for AT&T…which once was an ok outfit…but now so big it doesn’t give a rip about its customers…farms out its no-service to India…and will burn your ass up with overcharges. But most cattle will just go along..so I appluade the guy…give em hell, dude…make them be honest !!

  • Geust

    solution: BlackBerry … hate me now!

  • Anonymous

    I always have found it odd that I average about 6MB of “data” usage per day, even though I use WiFi whilst at home, and there is virtually no ATT voice/data coverage in either of my Manhattan offices (thus I dont use iPhone at all during work).

    Lol I cant even send a “mark the spot” app submission from my offices because there is no data connection.

  • http://twitter.com/MattSTKC Matthew H.

    Go read the whole article. I called BS on this from the headline until I read what they actually did, buying an iPhone, turning off push, not setting up email, turning off location and still it using an absurd amount of data just sitting on a desk somewhere. I wouldn’t be surprised if AT&T “Rounds Up” a lot (which is what they’re going to call it)

    • Anonymous

      Wouldn’t this be an iOS problem if it is just eating data for no reason? lol.

    • Anonymous

      It used 2.2 mb just sitting on a desk somewehrere for 10 days. That’s not absurd. That’s called having a smartphone.

      Shit like this belongs on Consumerist where being a drama queen is the norm. Did this guy really hire lawyers, a consulting firm and puchase a new iphone and service plan because he was overcharged and feels slighted? No. He’s a typical attention whore who is looking for easy mooney. Plain and simple.

      • http://twitter.com/BiggiePhat JG

        That’s America for ya.

  • http://www.vgchartz.com SuperChunk

    This is because AT&T, and probably others, sell data in blocks vs per kb. So, if you only actually use 1kb you are billed for say 6kb, until you use the 7th, then its 12kb… and so on.

    If it’s like that, then they will lose their case as that, I’m sure, is detailed in the fine print for AT&Ts data usage rates.

    Personally, I don’t see why bucketing anything is allowed as there is no reason any company needs to do that. Per unit should be mandatory.

  • Anonymous

    I knew that will happened thats why I am on unlimited data,last year I used my old iphone on not unlimited and my data use by ATT was on the roof, when I took my old BB unlimited data,and moved it to the iphone my unlimited data ,sadenly my usesage become normal again,

  • http://infotainmentempire.blogspot.com Rob

    I wonder how accurate the research is. If it’s true, would AT&T be forced to offer unlimited data again? Just a matter of time before AT&T does their own study, right?

  • BDUS

    Pretty simple. The marketing company shut off all data and push features. After 10 days it used over 2000 kb of data. So he has every right to be pissed if this makes him go over his 200 mb plan. Company’s plain and simply need us to enable WiFi only and cap ourselves if we choose to. Leave it up to us if we want to buy a gig or just get by the last 2 days of our plan on wifi.

    We put a man on the moon over 40 years ago. A couple lines of code and an on off switch on the screen could solve a lot in wireless.

    • Giddy UP

      And we’ve yet to return to the moon.

  • Guestguy

    Data reporting is delayed….. If they stop using on Monday but used an amount on Sunday it may report on Monday even thought ther person thinks they haven’t used any data.

    Any active sim does receive automatic over the air updates to make sure that tower conections are up to date. This is a tiny amount of data that I’m sure couldn’t be the basis for this lawsuit though.

    Without AT&T reporting it how do these people know how much data they’ve used? A 2MB file does neccesarily take 2MBs to download. The file is transmitted not as to MBs but as cellular trafic that indeed may be a little bit larger.

    I’ve never seen AT&T overbill anyone ever and not provide credits for when someone “thought” they were wrongfully overbilled.

    • Guestguy

      *does not* sorry, A 2mb file does not neccesarily take 2mbs to download.

  • ChocoTaco

    America’s consistently-voted worst carrier continues to get even worse, and yet they keep growing and growing. They have the worst voice codec in the industry, constant network issues due to overcrowding, a terrible phone selection, spotty 3G service and will be one of the last to deploy 4G, yet they keep growing. Keep feeding the monster, people.

    • Drew

      LOL!!! And they keep pumping out those “…the Nation’s fastest mobile broadband network” bullshit whenever they can. I guess their motto is, “if we keep telling lies people will start to believe them…”.

      • Bob

        They do have faster data, ive read several articles on it. I’m sure its not that way in every single place though. I have yet to lose in a speed test or attachment download comparison, even with my iphone which apparently is the reason at&t sucks according to everyone. I am on campus @ Penn State right now and im averaging 2.5mb to 3mbps downstreams and 1 to 1.5 up. I don’t know anyone with any carrier in this area that gets that. Sure sprint might be faster in certain markets, maybe even tslowbile, but now overall.

    • Petey

      Actually They got a better phone selection than T-Mobile!!! We get the lame phones. Grrr

      • ChocoTaco

        You can at least get a Nexus on T-Mobile. Even AT&T’s Android selection blows, and what they do have is full of their adware.

  • Drew

    Keep in mind these fuckers have already been sued (as has Verizon) for hidden charges. Yeah, bank on them losing that court case…

  • Anonymous

    nothing gives me more pleasure than to see ATT go into the dumps!. Who is laughing now ATT? remember how you used to screw with me? remember all the “surcharges” that you added after you lied about what they would be? remember how you wanted to charge me 50 bucks just to come and check YOUR telephone connectivity at my home?
    Hope you go bankrupt!

  • Anonymous

    IF they GIVE US OUR UNLIMITED DATA PACKAGES NON OF THIS WOULDN’T HAVE HAPPENED and I mean FOR ALL PHONES.

  • Itsjustmee

    wouldn’t surprise me a bit since they are dishonest about just about everything they do

  • research you product

    these people need to read the rysavy research survey and they will see why they use more data than they really think that they do.

  • Cmkaiser

    Ummmm, shouldn’t the second pump in the photo be an AT&T pump?

  • Ecuteent

    !!!What at&t and the others carriers are doing is taking all of us to the cleaners !!!!!!, but all of this will back fire in the end ,when an smart carrier will hustle the others , by offering unlimited data again ,an some one like me and millions of users would make a move ,and that carrier would rock and be #1,!!!thats life folks !!!!

  • Bob

    I’m not buying this, only because people like me would notice too, i reset my counter on my phone at the start of my billing cycle, i know maybe a bit excessive, but its nearly the same on my bill and my phone. I have a friend who thought he getting ripped off but what he did was leave something running in the background eating up data and causing his battery crap out in like 3 hours as well.

  • http://slrman.wordpress.com James Smith

    This is not surprise at all. When I had an ATT cell phone, they would charge me for text messages they sent to me – to sell me more services. At that time, I had never sent even one text message in my life. I refused to pay, they threatened, I laughed, I never paid, they folded when I had a lawyer friend send them a letter suggesting a class-action lawsuit might be the best way of settling this.

    I would never use ATT for anything at any time. They are blatant thieves.

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