AT&T settles class action over cancellation fees
updated 04:25 pm EST, Tue January 26, 2010
AT&T offers $18m settlement over ETF lawsuit
Wireless provider AT&T has chosen to settle a class-action lawsuit over allegedly charging flat-rate early termination fees to its subscribers. If approved, the settlement will see the provider pay out $16 million in cash and $2 million in non-cash benefits to residents of New Jersey whose cell phone contracts included a flat-rate ETF provision after 1998. Subscribers haven't had to even pay the early termination fee to be part of the class action lawsuit.
AT&T charged between $150 and $175 for terminating contracts before they were fulfilled. Despite the settlement, the provider refuses to admit any wrongdoing regarding these accusations and told Electronista the move was to "avoid the burden and cost" of more legal action. In addition to downplaying the results, AT&T also claims that prorated ETFs begun in 2008 and should avoid any of these disputes in the future.
Those involved in the case are urged to visit a dedicated website.
A court case to determine the approval of the settlement is scheduled for April 14th.
Fresh-Faced Recruit
Joined: Sep 2009
Yes, but what exactly is wrong?
As an AT&T customer, I got an email about this lawsuit, but simply charging a flat rate for something is not inherently wrong. Nor is the fact that it's "unlawful" (according to the email). There are tons of totally legitimate business practices that are illegal simply because an anti-business legislator crusaded for "justice" for his/her constituents, and because there are few if any constitutional protections on commerce to prevent it.
On the other hand, if AT&T had claimed in their *user agreement* that they would never charge such a rate, but broke the contract and charged it, that's another matter. But I see no evidence of that at this point.
In the absence of real wrongdoing, jumping on to this suit would simply be legalized plunder.