Plaintiffs allege that Apple and AT&T deceptively promoted that consumers could both sign up for an unlimited data plan and have the ability to switch, month by month, between that unlimited data plan or one with a 250MB limit as their needs changed.
Factual Allegations in the Complaint
As of June 7, 2010, Apple and AT&T decided to discontinue the “unlimited data” plan they had heavily advertised in connection with their sales of the 3G-enabled iPads. Apple and AT&T had promised consumers flexibility with their data plans, allowing them the ability switch back and forth between the limited data plan, the unlimited data plan, and no data plan.
The complaint alleges that iPad purchasers who initially opted for the limited data plan have been stripped of their ability to later opt for the unlimited data plan. Even those customers currently signed up for the unlimited data plan cannot switch to a limited plan and then later opt for the unlimited plan, as was originally promised. Apple and AT&T announced this policy change with less than one week’s notice to their customers and only about a month after Apple and AT&T began selling 3G-enabled iPads.
The complaint further alleges that consumers were convinced to opt for the more expensive 3G model, costing $130 more than a non-3G model, based on the advertised benefits of having an unlimited data plan and the freedom to continually switch in and out of that plan as their demand for data changed.
Proposed Class
Plaintiffs seek to represent a nationwide class consisting of all individuals and entities within the United States who purchased an Apple iPad 3G with an AT&T service plan.
Contact Us
Consumers who would like to report their experiences with the Apple iPad and their AT&T unlimited data plan, or who wish to learn more about the class action lawsuit, are welcome to contact an attorney at Lieff Cabraser by clicking here.
Source: Lieff Cabraser Heimann & Bernstein, LLP
MacDailyNews Take: We have no problem with this one at all. In fact, we might sign up for it ourselves.
I was planning on the 3G model because of the very sensible approach to a data plan: buy a little at one price, buy a lot at a higher price and no contract commitment.
Maybe too many people liked it and AT&T;knew they had to figure out something less beneficial to the user.
Screw AT&T;. Mourn the loss of the iPad, which I won’t buy without a real GPS and won’t pay an extra $129 just for that.
I agree with this and am signing up with them. I was forced to start paying AT&T;$30 a month to keep an unlimited plan I still don’t need yet on the last day that was possible. Until then I hadn’t even signed up for any 3G svice because my reason for buying the 3G iPad was for the GPS.
I haven’t bought an iPad ‘yet’ but if I had I’d be in on this lawsuit.
@Tt
Classic bait and switch, step up the the plate AT&T;, FU
Agreed X10
This is an easy fix, I suspect. A Verizon 3G micro sim?
There are more shysters (sorry – lawyers) than plumbers in the USA.
Welcome to America. BTW, the worst examples are in the Congress & the Senate. Or is it the ‘best examples’?
See, this is why I bought the wi-fi only iPad. One thing I knew, right from the start, was that there was no f’ing way I was going to buy something that meant doing additional business with AT&T;. I already had one idevice with crappy service, why would I want two?
This whole iPad bait and switch with AT&T;and the iPad is like the Dorothy Parker line: “The food was awful, and the portions so small.”
@ Anthony,
“Apple & ATT should be sued to the max for this one… the “revolutionary” pricing was anything but a short-term gimmick to lure consumers.”
Duh!!! “I am stupid and cannot read, write, or use my limited brain.. But the lawyer said I could make lots of money if I sue.”
PS, Did anyone know that you HAD TO KEEP PUTTING GAS into a car after you bought it????? How terrible. I should sue someone.
The decline and fall of the American Empire.. 🙁
Just a thought,
en
Everyone was so eager to get this 3G device that they ignored the advertising, which was very clear: “terms and conditions can change without notice”.
I know a person who still has a $25 per month voice-only contract with AT&T (from before their Cingular merger, while they were still TDMA). She isn’t cancelling/renewing, so AT&T is honouring it. She (along with others who had $25 plan) did NOT decide to sue AT&T when they upped the cheapest voice deal to $40. Nobody ever switched her; as long as she pays her monthly bill, AT&T will keep her on the cheap plan.
Nobody is switching anyone who signed up for the unlimited plan. AT&T never promised the availability of unlimited plan in perpetuity. Plans change all the time. So, what is “reasonable” period of time for a plan to have to be available, before AT&T can change it? How much in advance should AT&T notify the public of their intention to change the plans?
It seems that these are the questions that the class suit wants answered, since law doesn’t define them. AT&T didn’t breach any contracts here. The suit alleges only unfair business practices, and that’s where the the court will have to figure out how unfair is unfair.
In fact, my guess is, AT&T will likely settle this. Between the launch of 3G iPad and the change of the plan, it is likely that less than a million devices were sold. If that is the case, AT&T could give those users some generous usage credit (say, some $130 per iPad, under the unlimited plan – price difference between WiFi and 3G model) and make this go away.
As for Apple, if they can convincingly prove (which I don’t doubt for a minute) that they were essentially a duped party here as well (not knowing about AT&T’s plan to eliminate the unlimited plan), they will quickly be either excluded from the suit as a defendant, or the suit will be dismissed because of them.
I don’t see how this is Apple’s fault? They advertised the plan based on an agreement with AT&T;, then SBC, I mean AT&T;, reneged on the plan for all data users
The fault lies squarely in SBC, I mean AT&T;’s lap IMO. Still, as has been stated, it was only a matter of time before some ambulance chaser filed a suit against Apple & AT&T;looking for a settlement.
Typically I would agree with those that are saying it’s an ATT issue and out of Apple’s control. However, in this case I feel Apple is culpable too.
Everyone keeps talking about contracts, but what I remember of the presentation from Jobs during the day it was announced was that 3G data plans for the iPad were pre-paid, month-to-month with no contract and no commitment and you could buy a $15 or $30 plan at any time based on your needs.
I think this qualifies as the classic bait and switch. Many people, myself included bought 3G ipads with the intention of only buying data service periodically such as months where we are on vacation and the data plan would be good for long car trips and avoiding hotel connection issues. I haven’t had cause yet to activate the 3G on my iPad as that scenario hasn’t come up.
I don’t think Apple had any input on what AT&T;did with changing the rate plans. If anything I’m sure Steve might have told AT&T;that they are making a BIG MISTAKE!!!!
Reinstate unlimited for all ipad 3G owners for 1 year from release…case closed
At the very least, the unlimited plan should have been left intact until the next generation iPad.
What is this “Apple and AT&T;” bullsh*t? Since when does Apple have anything to do with AT&T;’s decisions regarding their own service plan offerings? In the event that Apple did conspire with AT&T;to change the iPad data plan, then they most certainly should be sued; but this seems very unlikely.
It’s a typical tactic in any lawsuit, major or minor, to sue everyone who might even peripherally be involved with the issue. It gives the plaintiff several advantages, not the least of which is that the ones who were sued and were NOT involved must demonstrate to the satisfaction of the court, under penalty of perjury, that they were not in fact involved and should be dismissed from the case. The demonstration frequently involves disclosure of items which might otherwise have been considered confidential, but which can be disclosed under subpoena.
In this case, Apple might want to keep quiet so as not to offend AT&T, but I can imagine Steve Jobs on the stand saying, “No, AT&T gave us virtually no warning that they were changing their policy; frankly, I was upset about it.”
Note that the above paragraph is completely hypothetical; I have no inside knowledge about what really happened.
—-
Sent from my iPod touch
(I’d have an iPhone, but I hate AT&T)
@ It’s not fine, print
I was not referring to anything relating to Apple vis a vis fine print but to the carriers themselves.
Apple does not operate a cellular network and so cannot be held responsible for the independent actions of a third party – so long as apple did not continue to use marketing language that was misleading after it became aware of the facts.
Yes the UK (and the US, Australia, etc.) has laws that can overturn a clause in a contract – in fact practically every jurisdiction can set aside a clause.
How about everyone stops being a baby? Nobody promised anybody that they could switch back and forth to an unlimited plan forever. Like another poster said, plans change… Deal with it. There is no contract, so you can change whenever you want. There is no contract, so AT&T;can changer whenever they want.
“because they promised…” ( even though they didn’t) isn’t really grounds to sue.
I’m going to initiate a class action suit against droids who think they can actually have an unlimited plan in a finite world.
unlimited |ˌənˈlimitid|
adjective
not limited or restricted in terms of number, quantity, or extent : the range of possible adaptations was unlimited.
• Mathematics (of a problem) having an infinite number of solutions.
And I’m starting another suit against class-action lawyers for inordinate profiteering by taking advantage of the mentally challenged by inducing them to front these lawsuits.
Wait an minute: maybe I should patent the idea and sue them all for infringement in that troll district in east Texas! That’s the ticket…
The main reason I don’t have an iPhone is AT&T;. And that was before they mucked over the data plans.
I’ll be honest, I’d rather take the hit from ATT than contribute to the wealth of lawyers.
Good.
But I don’t see why they sue Apple here. I think Apple is as angry with ATT like every one else.
I agree with the litigant who filed the class action lawsuit against Apple & AT&T;. This was a total bait and switch. I will likely take part in this lawsuit as well. It is clear Apple & At&t;promised an ability to switch between the unlimited plan and a plan with less data throughout when using the 3G model. It seems it was just a ploy to sell more ipads at a higher price point. I think they may have to settle on this one. Apple & AT&T;are gonna lose on this one.
@lemon: I pay 30$ a month,
For what service?
@lemon: new iPhone for 299, and no SIM-lock…
Which iPhone was $299? In what country?
@lemon: iPad data plan even cheaper…
How much is it?
The iPhone is available unlocked in these countries:
Austria, Belgium, Czech Republic, Denmark, Estonia, France, Germany, Greece, Hungry, Ireland, Latvia, Liechtenstein, Macedonia, Montenegro, Poland, Portugal, Romania, Russia, Slovakia, Spain, Sweden, Switzerland, Turkey, UK
Australia, China, Hong Kong, Macau, Malaysia, New Zeland, Singapore, Taiwan, Thailand, Vietnam
Brazil, Chile, Columbia, Dominican Republic, Ecuador, El Salvador, French West Indies,
Guatemala, Honduras, Paraguay, Peru, Uruguay
Reunion Island, South Africa
Israel, Quatar, Saudia Arabia, United Arab Emirates
Not one of which seems to offer what you are claiming.
The iPad is currently available outside the US in Germany, France, Italy, Switzerland, Spain, Japan, Australia, Canada, UK, again none seem to offer lower prices on their data plans.
Please enlighten us as to where you live and what your plans/rates are there.