Possible AT&T Overcharges Show Need for New York Consumer Protection

May 26, 2011

1115160_headset.jpgA recent federal lawsuit filed in California alleges that AT&T overbills its customers for data transactions and "phantom" traffic and seeks class status, ABC News reports.

Miami consumer lawyers have monitored the high cell phone charges communications companies have levied on their customers over the years as technology advances and coverage expands. Sometimes, they include odd charges or unauthorized charges that must be defended in court. If you feel you need consumer protection in Washington D.C., Miami, New York or elsewhere, let us evaluate your case. Conversely, business litigation attorneys should always be involved in drafting usage agreements, billing practices and other contracts with consumers.

According to the news reports, a California customer who has a limited data plan has sued the company after a hired engineer found that over two months of testing, iPhones and iPads consistently overstated data usage and billed for data traffic not associated with the users' devices. The lawsuit alleges the company makes monitoring data usage more difficult and sues for breach of contract and fraud.

The company denied overcharging its customers, though the report says the plaintiffs found on average the tested devices overstated data usage by 7 to 14 percent. In some areas, it was as high as 300 percent. Left untouched for 10 days, the engineer found the company billed the phone for 35 transactions despite disabling push notifications, email programs and location services.

The lawsuit shows the need for customers to be more aware of how cell phone applications work, experts said. Many consumers don't realize that applications often use data even when they don't appear to be running. Turning off WiFi, 3G or GPS functions can help cut down on data usage.

Many consumers believe companies are an unbeatable force in the courtroom. But that's not necessarily the case. The Ferraro Law Group has won millions of dollars for consumers in jury trials and settlements.

If you think you may be eligible for a lawsuit against a big corporation, fill out our free consumer protection contact form so we can discuss the case.

The Ferraro Law Firm provides comprehensive legal services, including business litigation on a contingency-fee basis. Call 1-800-275-3332 for a free and confidential consultation. Offices in Miami, Washington, D.C., and New York City.