What is the AT&T fee lawsuit?
The AT&T fee lawsuit is a class action lawsuit, which was filed in 2021 accusing the company of charging its customers illegitimate administrative fees. The suit alleges that between 2018-2021, AT&T included an “Administrative fee” to a customer bill amount of $0.99 to $1.99 per month per phone line/wireless device. This fee was unique and had not been prescribed by any government body but was charged by AT&T itself.
These fees were claimed by AT&T Internet to increase the apparent price of its services but at the same time offer a lower service price because of hidden fees not reflected in the price list. Customers stated that the fees were more often than not disguised on the customer bills through general names such as ‘Admin Fee’ or ‘Monthly Fee.’ Most customers complained that AT&T never clearly explained or even informed them of the fees.
In April 2021, several AT&T consumers joined a class-action lawsuit in the California federal court to sue the company claiming that it has breached the contract and consumer protection laws to charge unauthorized administrative fees. The claim involves all the company’s postpaid wireless and landline telephone consumers who, in 47 states, were charged these fees in 2018. It wants to be compensated for the fees paid by adding interest to the amount that the company has charged.
Some key points about the AT&T fee lawsuit
- It claims the fees were merely a mask for the actual price of services and conning customers into believing they were paying less than they were. According to plaintiffs, even reasonable consumers would perceive the fees as being associated with the government thereby making them not to be considered as the company’s profit.
- The lawsuit mentions that the internal name for such fees, according to AT&T, was called “junk fees” which shows that the company was aware of the fact that the fees being charged were frivolous and unwarranted.
- In its defense, it says that about 67 million of its wireless users were subjected to the wireless administrative fee while about 16 million of the landline clients were charged an extra monthly fee.
- AT&T potentially collected hundreds of millions in fee revenue it received from millions of customers who were charged $1-2 extra per month as per the lawsuit.
- The lawsuit seeks class certification for AT&T customers so that all the injured may come together with their resources and claims. This was done in the U.S. District Court Northern District of California.
- While making the allegations, AT&T’s business partners have been accused of charging customers exorbitant fees, which has been deemed as deceiving or improper by various parties. The company defended that the administrative fees were reasonable charges that the customers had to meet due to the services provided to them.
There is a pending lawsuit involving AT&T's fee that is still in federal court. While class action status can be granted and the company might be asked to pay back consumers in the future, should the case win. There is a trial expected to be conducted in a court of law and the dates are expected to be in 2023. Meanwhile, those AT&T consumers, who have been impacted by the practices, do not need to do anything to join the lawsuit. As with other class action cases, it is intended to provide representation to all the qualifying customers automatically if it overpowers AT&T.
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