Dialpad class action claims AI tech company illegally ‘taps’ T-Mobile customer service calls

Dialpad class action lawsuit overview:

• Who: Plaintiff William Terrill filed a class action lawsuit against Dialpad Inc.
• Why: Terrill claims Dialpad illegally “taps” and records calls that T-Mobile customers make to the company’s customer service line.
• Where: The class action lawsuit was filed in California federal court.

A new class action lawsuit alleges that Dialpad illegally “taps” and records calls that T-Mobile customers make to the company’s customer service line.

Plaintiff William Terrill filed the class action complaint against Dialpad on May 28 in California federal court, accusing the company of violating the California Invasion of Privacy Act (CIPA).

Dialpad developed and operates a conversation intelligence software-as-a-service (SaaS) that it sells to, and partners with, third-party businesses like T-Mobile, the lawsuit states.

The software is designed to “elevate every conversation” using an artificial intelligence (AI)-powered customer communications platform. To achieve this, Dialpad uses its proprietary technology, including DialpadGPT, an AI model trained on over 10 billion minutes of business conversations, to analyze voice interactions between businesses and consumers, the lawsuit explains.

Dialpad’s platform records a caller’s speech and then transcribes it using natural language processing (NLP), allowing AI to read the text, identify patterns and classify the data, according to the complaint. As a result, T-Mobile consumers’ telephone conversations are allegedly surreptitiously transmitted to Dialpad’s servers, where they are processed and analyzed using Dialpad’s AI and NLP and then presented to Dialpad’s clients in dashboards, searchable transcripts and reports, the lawsuit claims.

Dialpad, T-Mobile don’t get consent from customers to record calls, class action says

Terrill claims that by using Dialpad’s services, T-Mobile has aided, agreed with, employed and/or permitted Dialpad to intercept the conversations of their current and prospective consumers without their consent.

These consumers include individuals who call T-Mobile’s customer service line from within California to retrieve information, schedule service appointments, make changes to subscriptions and receive customer support, the lawsuit says.

Terrill says that when consumers contact and speak with businesses like T-Mobile, Dialpad eavesdrops and records these conversations without their knowledge.

Neither T-Mobile nor Dialpad obtained consent from the consumers before recording, accessing, reading or learning the contents of conversations between California residents and T-Mobile, the lawsuit argues.

Terrill is looking to represent anyone in California who called T-Mobile while in California and whose conversations were intercepted and recorded by Dialpad.

He is suing for violations of the CIPA and seeking certification of the class action, damages, fees, costs and a jury trial.

In March, a class action lawsuit filed in California federal court accuses Mint Mobile of secretly recording customer service calls without users’ consent.

What do you think of the allegations made against Dialpad in this lawsuit? Let us know in the comments.

The plaintiff is represented by Adrian Gucovschi of Gucovschi Rozenshteyn PLLC and Alec M. Leslie of Bursor & Fisher P.A.

The Dialpad class action lawsuit is Terrill v. Dialpad Inc., Case No. 3:25-cv-04509, in the U.S. District Court for the Northern District of California.

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