AT&T Is About To Get Away With Its Bogus $1.99 'Administrative Fee' (theverge.com) 24
Sean Hollister writes via The Verge: Since 2013, AT&T has quietly bilked customers out of hundreds of millions of dollars with a bogus "administrative fee," a fee it more than doubled to $1.99 a month in 2018. For a few years there, a California class-action lawsuit made it seem like AT&T might finally get taken to task. But this week, both sides told a judge they'd settle for just $14 million -- meaning customers may get less than 10 percent of what they paid AT&T, while AT&T gets to keep on charging them. According to the proposed settlement agreement in Vianu v. AT&T Mobility -- which still needs to be approved by a judge -- just about every AT&T Wireless postpaid customer in California since 2015 will be eligible for an estimated payment of between $15 and $29.
But again, that's only a fraction of what AT&T's own records show it charged: $180 per customer on average since 2015, according to documents. The settlement "represents a refund of approximately 6-11 months of the average fees," they read. Meanwhile, the lawyers are likely to get $3.5 million. "The estimated payment amount represents a strong result for the Settlement Class, particularly given the substantial risks, costs, and delay of continued litigation," reads the proposed settlement agreement, going on to list all the ways that the lawyers suing AT&T believe that AT&T might still win the case. [...]
Oh, and you won't even get a check in the mail if you're still an AT&T customer, assuming this version of the settlement is approved. The money will be credited back to your AT&T account, where AT&T can dip its hand right back in again for that $1.99 -- or more if it feels emboldened enough to increase the fee yet again. (Admittedly, the AT&T account could be a more reliable way to make sure customers get money back.) The settlement websites can be found here.
An AT&T spokesperson issued the following response: "We deny the allegations in this lawsuit because we clearly disclose all fees that are charged to our customers. However, we have decided to settle this case to avoid lengthy, expensive litigation."
But again, that's only a fraction of what AT&T's own records show it charged: $180 per customer on average since 2015, according to documents. The settlement "represents a refund of approximately 6-11 months of the average fees," they read. Meanwhile, the lawyers are likely to get $3.5 million. "The estimated payment amount represents a strong result for the Settlement Class, particularly given the substantial risks, costs, and delay of continued litigation," reads the proposed settlement agreement, going on to list all the ways that the lawyers suing AT&T believe that AT&T might still win the case. [...]
Oh, and you won't even get a check in the mail if you're still an AT&T customer, assuming this version of the settlement is approved. The money will be credited back to your AT&T account, where AT&T can dip its hand right back in again for that $1.99 -- or more if it feels emboldened enough to increase the fee yet again. (Admittedly, the AT&T account could be a more reliable way to make sure customers get money back.) The settlement websites can be found here.
An AT&T spokesperson issued the following response: "We deny the allegations in this lawsuit because we clearly disclose all fees that are charged to our customers. However, we have decided to settle this case to avoid lengthy, expensive litigation."
Just more proof that Mitt Romney is wrong. (Score:3)
Corporations aren't people - they get better treatment.
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> Corporations aren't people - they get better treatment.
Right - they can be raging sociopaths and never have to even consider the possibility of facing prison time (nor a death penalty).
Americans are more willing to terminate their fellow humans' lives than a corporate charter. Guess who taught them to think like that?
TOTAL (Score:2)
What does it matter? The cost is the cost. As long as it is not hidden or they are false advertising, whatever. There is plenty of competition in this space, so it will take care of itself.
It is no different than stupid Ebay listings of some gadget for $1 and then $19 shipping and handling. The cost is $20.
Re:TOTAL (Score:5, Interesting)
I just went through the process of seeing what AT&T offer at my house. I went to the cart and see this at the bottom:
"* Except as otherwise indicated, quoted prices don't include taxes, fees, surcharges, shipping, or other charges where applicable."
So it appears that they are still hiding the real cost.
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>"So it appears that they are still hiding the real cost."
Exactly. So it is not the fees, it is the hiding of them that is the real issue.
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An AT&T spokesperson issued the following response: "We deny the allegations in this lawsuit because we clearly disclose all fees that are charged to our customers. However, we have decided to settle this case to avoid lengthy, expensive litigation."
Translated: "Ah, you caught us this time, but don't worry, there are seven other hidden fees you haven't found yet, and once you've found those we can just keep adding more".
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If an MVNO can provide me service without a black-box fee like that, so can AT&T.
It's false advertising (Score:3)
There is plenty of competition in this space, so it will take care of itself.
It is no different than stupid Ebay listings of some gadget for $1 and then $19 shipping and handling. The cost is $20.
They're a massive profitable company and it is very sleazy to advertise one price and in fine print raise the price for the customer. Also, by making charges difficult to find, they're competing unfairly. If someone lists a gadget for $1, it means customers will go there rather than buy it for $5 from a legit vendor.
Also, please remember that we're talking about AT&T...a very wealthy company that stays wealthy through both legitimate business and shady tricks like this.
Re: (Score:2)
Problem is, it's often hidden. AT&T will tell you the "cost" of a phone plan, but in the small print, they say that the cost does not include various fees and taxes. They don't typically provide an easy mechanism to find out what those fees and taxes are. The last time I went into an AT&T store to buy a phone (granted, this was many years ago) the salesman said that he could not tell me what the amount of my monthly bill would be, that I would just ha
Re: TOTAL (Score:2)
At least it's just a phone company trying to weasel $40/mo out of you and not some hospital playing the same "we don't know what it costs, probably a few thousands?"
(Hahaha. They can both be evil and regulated to be more transparent.)
Re: (Score:2)
It is no different than stupid Ebay listings of some gadget for $1 and then $19 shipping and handling. The cost is $20.
That's not always the same thing. The global shipping shortage has led to eBay listings of a $3 toy with $25 shipping from Britain to the USA.
Like the government (Score:2)
Try flying somewhere. You pay a fuel surcharge on top of your ticket, then a security fee, then a homeland security fee, then tax on the ticket price, and a 9/11 fee. 9/11 was bad enough, you don't have to go on charging me for it. We should get a 9/11 payment just to make us feel slightly better about it, if you're going to remind me about it at all.
Re: (Score:1)
You pay a fuel surcharge on top of your ticket, then a..
Concert tickets are like this too. TicketMaster got in some kind of legal hot water over it, and as near as I can tell they're still doing it.
My partner still falls for it, too. "Let's go see so and so, tickets are only $X dollars!", he'll say.
Me: "Umm, so what's the total for two tickets once you get to the checkout page?"
Him: (Some amount that is significantly higher than the previous price *2)
Me: "Damn, that's a lot of fees."
Re: (Score:2)
Recent had this come about where the fees were more than the tickets.
I mean, really.
And you couldn't even print them out or have them sent. Only a QR code on your phone.
Re: (Score:2)
Be careful what you wish for (Score:4, Funny)
OK, go ahead and ban the administrative fee.
But do you expect that anybody is going to administer your internet connection for free?
What happens the internet connection administrators all walk away because they're not getting compensated for their work? Do you think that the connection is going to administer itself?
You'll all eventually find out what happens to unadminstrated connections. And it won't be good.
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What, you mean like maybe they'll stop randomly resetting it once a day?
Re: (Score:2)
Re: (Score:3)
> But do you expect that anybody is going to administer your internet connection for free?
Do you believe nobody administers the infrastructure at every provider who doesn't tack on a bogus $2 fee?
Re: (Score:1)
All kinds of companies do this shady bullshit, and some even hide it more than AT&T did. The power companies on the east coast are rife with hidden fees, bullshit 'Administrative Payment Charges' that increase bonuses and executive pay, and they just get away with it unchallenged because th
The Usual (Score:1)
Steal a pack of gum, you will be charged under criminal law.
Defraud millions of customers, for millions of dollars, the victims have to file their own civil suit.
Civil for me, criminal for thee.
Only one has a potential penalty of being locked in a cage. Think if you tricked some poor old person into signing an arbitration agreement before robbing his house youâ(TM)d avoid prosecution? Try it.
And there are many people who would rather big companies face no penalties at all. They opine that personal res
We've changed... (Score:2)