Lieff Cabraser represents consumers in a proposed class action lawsuit against AT&T claiming that AT&T falsely advertised that its “unlimited” mobile phone plans provide “unlimited” data, while purposefully failing to disclose that it regularly “throttles” (i.e., intentionally slows) customers’ data speed once they reach certain data usage thresholds.
The lawsuit also challenges AT&T’s attempts to force consumers into non-class arbitration, claiming that AT&T’s arbitration clause in its Wireless Customer Agreement violates consumers’ fundamental constitutional First Amendment right to petition courts for a redress of grievances.
The AT&T “Unlimited” Data Lawsuit
The suit seeks to represent a class that could include at least hundreds of thousands of members. The plaintiffs allege they bought iPhones with unlimited data plans and experienced throttling, which company representatives had blamed on system congestion.
The lawsuit comes after the FCC in June 2015 announced a record proposed $100 million fine against AT&T for misleading customers about its unlimited data plan. The regulator’s investigation found that AT&T “severely” slowed the speeds and failed to adequately notify its customers that they could receive speeds slower than the normal network speeds the mobile giant had advertised, the FCC said.
The FCC noted that AT&T’s disclosures about the maximum bit rate policy were not sufficient for customers to make informed decisions about the data plans. The agency said speeds were reduced by as much as 90 percent — making the use of core applications such as maps impossible — and the reductions lasted an average of 12 days in a monthly billing cycle.