AT&T Slowdown of Unlimited Plans ILLEGAL?

[icebike]

See THIS LINK for the full story:

SIMI VALLEY, Calif. (AP) — A judge in Southern California on Friday awarded $850 to an iPhone user because AT&T Inc. reduced his download speeds in an attempt to manage usage on its network.
Pro-tem Judge Russell Nadel found in favor of Matt Spaccarelli in Ventura Superior Court in Simi Valley. Spaccarelli filed a small claims case against AT&T last month, arguing the communications giant unfairly slows speeds on his iPhone 4's unlimited data plan.
Nadel's ruling could pave the way for others to follow suit. AT&T has some 17 million customers with "unlimited data" plans that can be subject to throttling, representing just under half of the company's smartphone users.

....

Spaccarelli said his phone is being throttled after he's used 1.5 gigabytes to 2 gigabytes of data within a new billing cycle. Meanwhile, AT&T provides 3 gigabytes of data to subscribers on a tiered plan that costs the same — $30 per month.

Does this change the game?

 

[pazzo02]

Hopefully. I have been searching for someone to spearhead a class action suit. Maybe this will make it happen. More likely that AT&T will rework their throttling program to make sure they're not throttling until at least 3GB.

 

[jphillips1963]

I'm sorry unlimited is just that regardless those of you on at&t should not be throttled period. If you have your original signed contract look and see if there is any wording for excessive usage and being throttled if not then all of you can be refunded in court for this illegal activity.

Sent from my HTC Rezound using Tapatalk

 

[Jerry Hildenbrand]

Couple things Yahoo missed there:
Dude sued for $10,000 and breach of contract. He was awarded 3GB/Month data fees for the life of his contract instead.
Dude was caught tethering, and forced to the 3GB/Tether plan. He kept after it until he got a rep to switch him back.

This "victory" is bad for consumers IMO.
Now there's a precedent to not call throttling a breach of contract, and you can bet when AT&T catches you tethering, they will just block your SIM and cancel your plan. Then you have broken the contract, and will be subject to the ETF.

AT&T is certainly enjoying their $850 penalty, and I'm sure the lawyers are hard at work to screw everyone now that they know how to do it.

 

[pazzo02]

I'm sorry unlimited is just that regardless those of you on at&t should not be throttled period. If you have your original signed contract look and see if there is any wording for excessive usage and being throttled if not then all of you can be refunded in court for this illegal activity.

Sent from my HTC Rezound using Tapatalk

AT&T can get you in a number of ways, one being their Acceptable Use Policy. One of the lines in there, "interferes with the use or enjoyment of services received by others", is basically their reasoning for throttling. They also don't guarantee speeds, so even though 2g data is almost unbearable, it's still a connection.

 

[dxhunter]

I think that by coming out and saying they're going to throttle, they have given me notice that they're terminating my contract. I have unlimited data with tethering. What do you think?

 

[Verdes8891]

I think that by coming out and saying they're going to throttle, they have given me notice that they're terminating my contract. I have unlimited data with tethering. What do you think?

As nice as that would be, that would not be so. This falls into place with the terms and conditions being subject to change without notice. If it was a meterial change in your contract, casuing your bill to go up each month because of such, then you would have grounds to try and get out of your contract without paying a penalty.

 

[dxhunter]

I think that telling me that my service will become unreliable if I use over 3 GB is pretty material. Since I use my phone, and the data portion, for work. it would be more so.

 

[Verdes8891]

I think that telling me that my service will become unreliable if I use over 3 GB is pretty material. Since I use my phone, and the data portion, for work. it would be more so.

It wouldnt be material becuase using more then 3gb of data on an unlimiited plan is not costing you more money per month.

 

[icebike]

I think that telling me that my service will become unreliable if I use over 3 GB is pretty material. Since I use my phone, and the data portion, for work. it would be more so.

Your service won't become unreliable. It will become reliably slower.

Still, any time they change terms, you can get out of your contract without an ETF, and you get to keep the phone. Ebay it.

 

[Verdes8891]

Your service won't become unreliable. It will become reliably slower.

Still, any time they change terms, you can get out of your contract without an ETF, and you get to keep the phone. Ebay it.

Within the terms and conditions of AT&T's contract is does state:

"AT&T reserves the right to deny, disconnect, modify and/or terminate service, without notice, to anyone it believes is using the service in any maner prohibited or whose usage adversely impacts its wireless network or service levels or hinders access to its wireless network"

Now, i am not saying that this is morally right. But because of that line there you would not be able to get out of your contract without more being done.

 

[pazzo02]

I think that by coming out and saying they're going to throttle, they have given me notice that they're terminating my contract. I have unlimited data with tethering. What do you think?

No where in anyone's contract is there a guarantee of speed. That's how they can get away with it. Everyone should be happy that they decided to set it to 3GB. There had been a lot of people that were getting throttled below 2GB.

 

[icebike]

Within the terms and conditions of AT&T's contract is does state:

"AT&T reserves the right to deny, disconnect, modify and/or terminate service, without notice, to anyone it believes is using the service in any maner prohibited or whose usage adversely impacts its wireless network or service levels or hinders access to its wireless network"

Now, i am not saying that this is morally right. But because of that line there you would not be able to get out of your contract without more being done.

But presumably you were using your device within the terms of the contract that you had (the unlimited one), and now they impose a new restriction on you. Lets say you were using a reasonable amount of data, say 4gig, and now they slow you down after 3 gig.

Well, its still unlimited, but its slow enough that you can't watch the movies you could previously.

You get an out.

What you quoted above clearly states "in a manner prohibited", well it wasn't prohibited when you signed up, and your use did not impact their network when they sold you the contract. In fact they advertised the ability to stream movies.

So this is a material change to the contract.

AT&T can state anything they want in the contract, but they can't get around the law. And the consumer protection laws of many states (most states actually) as well as the interstate federal laws do not allow them to make one sided changes to the contract. And just because you signed the contract does not mean you have signed away your rights. You can not sign away your rights. That is a matter of settled law. (People tried to end run slavery prohibition this way).

You go in and , and they will release you from your contract. If they resist, just use words like "consumer protection complaint" and they will cave.

 

[Verdes8891]

But presumably you were using your device within the terms of the contract that you had (the unlimited one), and now they impose a new restriction on you. Lets say you were using a reasonable amount of data, say 4gig, and now they slow you down after 3 gig.

Well, its still unlimited, but its slow enough that you can't watch the movies you could previously.

You get an out.

What you quoted above clearly states "in a manner prohibited", well it wasn't prohibited when you signed up, and your use did not impact their network when they sold you the contract. In fact they advertised the ability to stream movies.

So this is a material change to the contract.

AT&T can state anything they want in the contract, but they can't get around the law. And the consumer protection laws of many states (most states actually) as well as the interstate federal laws do not allow them to make one sided changes to the contract. And just because you signed the contract does not mean you have signed away your rights. You can not sign away your rights. That is a matter of settled law. (People tried to end run slavery prohibition this way).

You go in and , and they will release you from your contract. If they resist, just use words like "consumer protection complaint" and they will cave.

Im not trying to start up a heated battle or troll anyone, but because it does state in the contract that they reserve the right to modify services based on how the services are used and it is not costing you any extra money per month, you would not get out.

I work for AT&T and have tried assisting some of my customers with issues like this, and that is the answer that i keep on running into.

 

[icebike]

Contracts are a two way street.

The money that changes hands is not the ONLY controlling aspect of a contract. Just because they are not charging you any additional money doesn't give them a free hand.

Their end of the contract obligates them to provide an agreed upon level of service. They can't cut that in half and still claim they are withing the contract. Its called Bait and Switch, and its illegal in 50 states.

One sided contracts are Illegal.

Trust me, you will get an out.

 

[Verdes8891]

Contracts are a two way street.

The money that changes hands is not the ONLY controlling aspect of a contract. Just because they are not charging you any additional money doesn't give them a free hand.

Their end of the contract obligates them to provide an agreed upon level of service. They can't cut that in half and still claim they are withing the contract. Its called Bait and Switch, and its illegal in 50 states.

One sided contracts are Illegal.

Trust me, you will get an out.

Promises of the services are agreed upon and AT& is delivering. Just as the AC front page story posted earlier today about the 3gb and 5gb limit. The data is remaining unlimited, but there is nothing stated in the contracts or terms and conditions about the speed of the service. So nothing is being broken.

 

[pazzo02]

Lets say you were using a reasonable amount of data, say 4gig, and now they slow you down after 3 gig.

Why do you think 4GB is a reasonable amount of data? AT&T says that more than 95% of their smartphone customers use less than 3GB am month. And a 2011 Neilsen survey found that " the average smartphone user consumes about 435 megabytes of data each month." So I would disagree that 4GB is reasonable. We're lucky they changed the tiered plan from 2GB to 3GB, otherwise they'd be throttling at 2GB.

 

[dxhunter]

Why didn't they just wait 'til our contracts are up and then not offer the unlimited service anymore. They were already having problems at the time I bought my last phone. I wouldn't have the issue if they told me that service was unavailable for the new cycle. Instead they alienate a bunch of customers.

Verdes8891: I can see how they can not deliver 3G service if they're having issues, but not how they can say they'll deliberately cut my service to 2G if I'm adhering to my side of the contract. Also, there is more to a contract than what's in the paper. My phone was advertised as a 3G phone. The box and documentation says it's a 3G phone. That means I should get 3G service where it's offered as long as I'm not violating my contract.

I think we're going to see a class action lawsuit. Everyone will end up with a dollar except the lawyers.

 

[Verdes8891]

Why didn't they just wait 'til our contracts are up and then not offer the unlimited service anymore. They were already having problems at the time I bought my last phone. I wouldn't have the issue if they told me that service was unavailable for the new cycle. Instead they alienate a bunch of customers.

Verdes8891: I can see how they can not deliver 3G service if they're having issues, but not how they can say they'll deliberately cut my service to 2G if I'm adhering to my side of the contract. Also, there is more to a contract than what's in the paper. My phone was advertised as a 3G phone. The box and documentation says it's a 3G phone. That means I should get 3G service where it's offered as long as I'm not violating my contract.

I think we're going to see a class action lawsuit. Everyone will end up with a dollar except the lawyers.

This is only going to affect someone who is using more then 3gb's per month on the data. It is a known fact that the more a service is used, the more it takes to maintain. When theres no traffic on a free way, its glorious. But during rushhour, it is slow as all can be. Same principles apply. This is AT&T's way of trying to ease the stress of the network so it wont crash and burn and cause everyone to be without service. No one is going after Tmobile in this way and they off you less data before they throttle you. So in all honesty, 3gb for 3g and 5 gb for 4g is pretty good in comparison.

 

[pazzo02]

Verdes8891: I can see how they can not deliver 3G service if they're having issues, but not how they can say they'll deliberately cut my service to 2G if I'm adhering to my side of the contract. Also, there is more to a contract than what's in the paper. My phone was advertised as a 3G phone. The box and documentation says it's a 3G phone. That means I should get 3G service where it's offered as long as I'm not violating my contract.

That would fall under their Acceptable Use Policy.

General Prohibitions: AT&T prohibits use of the IP Services in any way that is unlawful, harmful to or interferes with use of AT&T's network or systems, or the network of any other provider, interferes with the use or enjoyment of services received by others, infringes intellectual property rights, results in the publication of threatening or offensive material, or constitutes Spam/E-mail/Usenet abuse, a security risk or a violation of privacy.

They can easily argue that the few that are using the most data are interfering with the use of services received by others. Look at how much trouble Verizon is having with their LTE network. You think that's not caused by network congestion when you see people boast about using over 10GB a month?