AT&T Faces Another Data Throttling Class Action Lawsuit

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A new class action lawsuit was filed on Oct. 29 against AT&T Mobility LLC, alleging that AT&T deceptively advertised its “unlimited” data plans for smartphones and fraudulently slowed consumers’ data speed—a practice known as “throttling”—after they reached a certain limit of between 3-5 GB of data.

“A reasonable consumer is likely to be misled by AT&T’s promise of ‘unlimited’ data,” according to the class action lawsuit filed on Thursday. The AT&T throttling class action lawsuit seeks damages in excess of $5 million for all consumers nationwide who purchased “unlimited” data plans from AT&T and whose usage was throttled by AT&T.

The AT&T throttling class action lawsuit alleges that after AT&T switched to a “tiered” data plan structure in 2011, the company imposed a “cap” on its so-called “unlimited” data plans. After that data cap is reached, AT&T allegedly slows the data speed to such an extent that it makes it “effectively impossible” to access standard features on a smartphone which require a minimum data speed to function properly.

The class action lawsuit asserts that by throttling the data of consumers still on an “unlimited” plan, it is pushing those consumers to switch to AT&T’s “tiered” data plan. In addition, AT&T can collect early termination fees if consumers end their contracts early.

AT&T has been under fire for its “throttling” practices in other lawsuits. In October of 2014, the Federal Trade Commission filed suit in California alleging that AT&T’s data throttling is unfair and deceptive under federal law. And in June of 2015, the Federal Communications Commission filed an administrative action seeking a $100 million fine against AT&T for the same practices.

Lisa Hayes, the lead plaintiff in this AT&T throttling class action lawsuit, states that she purchased an iPhone and an “unlimited” data plan from AT&T, based on AT&T’s advertising that consumers could “use smartphones and data plans in typical ways such as browsing the internet, streaming or downloading music and videos, running apps, and using GPS navigation.” Hayes claims that she continued to upgrade her iPhone and stay with AT&T because of the promise that she would remain on an “unlimited” data plan.

However, AT&T allegedly began to throttle the plaintiff’s data access. According to the class action lawsuit, Hayes noticed her limited ability to use her smartphone at certain times, but assumed it was because of network issues. Hayes asserts that she first learned of the data cap from a text message sent by AT&T in August of this year. The message reportedly said that Hayes had reached 75 percent of her data limit of 5 GB, and that she “may experience reduced speeds” if she exceeded the 5 GB limit.

Hayes claims in the class action lawsuit that she was misled by AT&T, and that AT&T did not adequately disclose its practice of throttling smartphone data. As a result, she says she paid “for products and services that were not as advertised” and she paid “more for her products and services than she otherwise would have paid.”

Hayes is represented by Kenneth G. Gillman of Gillman Law LLP.

The AT&T Throttling Class Action Lawsuit is Hayes v. AT&T Mobility LLC, Case No. 15-cv-13669 in the U.S. District Court for the District of Massachusetts.

UPDATE: According to court documents, this case was dismissed on March 22, 2016. The reason for the dismissal was not provided.