Skip to main content

AT&T hit with class action lawsuit over iPhone, iPad data overcharges

A man in California has filed a class action lawsuit against AT&T, alleging that the company’s monthly bills to customers “systematically overstate web server traffic by 7% to 14%,” and in some instances by as much as 300 percent. The complaint specifically addresses AT&T accounts linked to iPads and iPhones. “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 reads.

According to the suit, plaintiff Patrick Hendricks hired an independent consulting firm to investigate AT&T’s billing methods. The suit gives an example where a 50KB website was downloaded using an iPhone, but the user would be typically be billed for 53.5KB of data, a 7 percent overcharge, and sometimes for as much as 150KB, a 300 percent overcharge.

The suit goes on to claim that AT&T not only overcharges customers, but also bills for “phantom data traffic when there is no actual data usage initiated by the customer.” The complaint alleges that this second offense was uncovered after the consulting firm purchased an iPhone from AT&T and then disabled all push notifications and location services, closed all applications, and did not configure an e-mail account. The phone was left untouched for 10 days during which AT&T billed the device for 35 data transactions totaling 2,292KB of data usage, the complaint alleges.

Hendricks is an AT&T iPhone customer with a 200MB data plan that costs him $15 a month. According to the suit, during his October-November billing period Hendricks exceeded his monthly data allowance by 23MB, resulting in an additional $15 fee. “Many of these charges were for phantom data transactions that either never happened or were never initiated or experienced by Mr. Hendricks,” the complaint says. “The remainder of these charges were systematically inflated in terms of the actual amount of data used.”

The suit says that the while the alleged overcharges have a “modest effect” on individual customers, the additional money generated from inflated billings has had a “huge effect” on AT&T’s data revenue. The complaint accuses AT&T of breach of contract, unjust enrichment, unfair competition, and unfair and fraudulent business practices in violation of the Unfair Competition Law in the California Business and Professions Code. Hendricks is seeking restitution for the overcharges as well as compensation for punitive damages for the alleged illicit business practices.

An AT&T spokesman responded to the suit in a comment to PC World: “We have only recently learned of the complaint, but I can tell you that we intend to defend ourselves vigorously. Transparent and accurate billing is a top priority for AT&T.”

AT&T dropped its unlimited data option back in June of last year and began instead offering capped data plans. The company’s tiered data plans include a 2GB option for $25 a month and  a low-end 200MB plan for $15 a month. Users who exceed their limits incur additional fees on their monthly bills. AT&T is reportedly offering some customers a chance to revert to unlimited plans.

Editors' Recommendations

Aemon Malone
Former Digital Trends Contributor
I keep forgetting about the Apple Watch Series 9’s coolest feature
Apps on the Apple Watch Series 9's screen.

I’m just going to come out and say it: I love the Apple Watch Series 9. A couple of weeks ago, I returned to wearing it every day after an extended period of not doing so. And you know what? I was surprised by how much I’d missed it.

But one thing has bothered me this time around: There's a feature I haven't been using. Not because it’s bad, but because I tend to forget it's there.
Effortless to own and wear

Read more
3 foldable phone deals you should seriously consider today
The Google Pixel Fold with the screen open.

For those who are thinking about getting a foldable phone, we've rounded up three foldable phone deals for you to consider as your next purchase. Motorola is currently selling the Motorola Razr at $200 off, which brings its price down to $500 from $700, and the Motorola Razr Plus at $300 off, which lowers its price to $700 from $1,000. Meanwhile, the Google Pixel Fold is available from Best Buy with a $500 discount that slashes its price to $1,299 from $1,799. You can be sure that you won't regret purchasing any of these devices because they're all included in our roundup of the best folding phones, but you need to hurry because the offers may expire at any moment.
Motorola Razr -- $500, was $700

The Motorola Razr features a 1.5-inch external OLED display and a 6.9-inch Full HD+ internal pOLED display, with decent performance provided by its Qualcomm Snapdragon 7 Gen 1 processor and 8GB of RAM. It's got a 64MP main camera and a 13MP wide-angle camera at the back, plus a 32MP selfie camera inside. The folding phone features a metal chassis that's surrounded by soft but durable leather, and it folds without a gap.

Read more
The OnePlus 12R is still one of 2024’s best smartphone deals
OnePlus 12R Genshin Impact Edition in hand.

OnePlus is still quite new to me, as I was a lifelong iPhone user until I joined Digital Trends. However, OnePlus has a pretty solid reputation in the mobile world, and now I can see why, as the OnePlus 12 is one of my favorite smartphones that I’ve used so far this year.

But the OnePlus 12 isn’t the only phone that OnePlus launched in 2024. There is also the more affordable value option, the OnePlus 12R, which even comes in a cool Genshin Impact Edition.

Read more