When was the last time you read your AT&T contract? If you answered “never,” then may I suggest you take two minutes to look this over. That’s right, unbeknownst to you, you just lost the ability to enter into a class action lawsuit against the mobile phone carrier. High five!
Right, so the language in question is:
Any arbitration under this Agreement will take place on an individual basis; class arbitrations and class actions are not permitted.
In other words, thanks to the new wording of the AT&T contract, if you feel like entering into a class action lawsuit against AT&T, well, you can’t. It’s all there in black and white.
The thing is—and this is based on like 10 minutes of research—any change to a contract that benefits one part over the other represents a chance for the other party to cancel the contract without facing any penalties or fees. So, if you don’t like the fact that you now cannot join a class action lawsuit against AT&T, ring ‘em up and say, “Yes, I’d like to cancel my contract, please. Here’s your rubbish iPhone back.”
This is not a good summer for AT&T. First the upgrade fiasco, then a mass nerd defection due to outages, and now this.
via Slashdot
Quoth AT&T:
AT&T has not recently made any changes in its terms of service regarding our arbitration clause. This approach has been in effect since Jan. 2001. We have made minor changes to our arbitration clause – most recently in Jan. 2009 – but those changes have been to the benefit of the consumer.
· It is worth noting that this approach – an arbitration clause with a class action waiver — is standard for the wireless industry.
*We continue to believe that a consumer is better off pursuing a claim under our arbitration clause, rather than pursuing a class action. Arbitration is typically a fast, cost-effective, and pro-consumer way to address disputes, and AT&T’s arbitration agreement is among the most consumer-friendly in the nation.
*A federal judge in West Virginia, even before recent improvements to AT&T’s arbitration policy, praised it as “unusually consumer-centered.”
*Our current arbitration clause calls for the company — if it does not settle a consumer complaint and the consumer receives an award that is greater than the company’s settlement offer — to pay the greater amount of either the arbitration, or $10,000. This is what changed in Jan. 2009; previously the amount was $5,000.
*Likewise, if the consumer has used a lawyer in winning an arbitration case and is awarded more than the company’s settlement offer, the company would pay two times the lawyers’ fees. Finally, we pay the entire cost of the arbitration, except if a customer is claiming $75,000 or more.
class action lawsuits are dumb.
i was involved in one…after the lawyer got tens of thousands, and whatever other fees, i got a fat check for $.24
I think you’re missing the point of a class action.
Good luck proving that not having Google Voice caused you personal injury in small claims arbitration. Compare with a class action that basically says that AT&T did injury to its customers, generally, and Google, specifically, for its role in disallowing the app – putting AT&T up against a jury of peers.
It’s not about you getting a million dollar payday from big business. Of course, this is how trial lawyers make a livelihood. But then again, they are still paying off law school, right?
I have Google Voice, and at&t. I don’t see the problem …
Oh yeah, I don’t have a locked down phone that prevents me from installing whatever applications I want on it.
Here here.
I’ve been using Google Voice (formally GrandCentral) for 3 years now on AT&T with my Nokia.
Somewhere I missed the part that only the iPhone would work with Google Voice on AT&T.
it’s more like tens of millions, those lawyers will wipe their ass with your 10 thousand.
Call the FCC too if they refuse to terminate the contract without charging “Early Termination Fee.” http://esupport.fcc.gov/complaints.htm
Once you fill out the complaint, they will give you a reference number and a fax number to send them any documentation. I would suggest sending the FCC your bill and the notice of ending the right to file class action law suit.
If there is enough complaints, the FCC will be bound to take action against these wireless providers for their arbitrary practices.
Best of luck.
NUddin
For those who wish to thank AT&T for this kind practise, their general counsel, in charge of their legal affairs, is Wayne Watts, and his phone number is given on the web at 210-351-3476.
Really? So I can get rid of my iPhone without a termination fee?
PHUKENRITE YOUNG PADAWAUN NOW GO USE THE FARCE AND GIVE THE DEATHSTAR A BOSTON CHILIDOG
what.
@iGod: I agree completely. Young Padawaun served with The Farce, and especially to accompany Boston Chilidogs, is the epitome of culinary perfection — who wants a class action suit to address customer grievances when you can simply toss back a Padawaun with a cold one! Right on, bro…
Yes, that’s exactly what it means. You have to specifically say that you don’t agree to the terms of the new contract when you cancel to be able to get out of the fee, though.
Well if Verizon would hurry up and release the Pre maybe I would cancel my At&T contract…
/looks at date and time on watch…sigh…
silly mr. dole! you know verizon will never do that. you’ll be stuck with a razr until 2027.
Yes, that will stand in a court of law! And, the contract also says that AT&T can do whatever it wishes in monitoring your actions and behaviors.
The contract said they could! It must be true!
Nicholas is right. Clauses that say you can’t sue or you can’t pursue some form of legal action often fail to stand up in court. They can put whatever they want in the contract, but contracts are not legal just because they’re in black and white. It’s just a deterrent.
Oh!! just THINK of how much i’ll save on lawyer fees!! I’ll save so much i should upgrade my AT&T phone!!!! :P
Well, you say “can’t” enter into a class action, but how do you know if this ToS will stand up in court? Rarely do ToS agreements in their entirety do
Yeah, I’m going to doubt that the courts would agree that AT&T could just silently make customers give up their right to a class action, especially in light of recent events that have been casting suspicion on AT&T’s role in the iPhone app approval process.
Would seem to open up a window of opportunity for those folks who;
a) have been waiting to upgrade to the iPhone 3GS, but weren’t yet eligible for the subsidized price, and
b) aren’t really all that offended by this particular clause
You could conceivably now cancel your existing contract for cause, then turn right around and get a new iPhone 3GS, along with a new contract, at the full discount.
thats my plan. 3gs here i come.
New contract clauses generally say that in order to get “new contract pricing”, you cannot have been an AT&T customer for 3-6 months. Plus, I think you loose your number in that process.
yes, this is my chance for 3gs upgrade, Yo AT&T screw youz. looking forward to seeing how they can further screw things up.
I suspect the people that do this will be zero, including all the tech journalists that will repeat this story for the next week.
“any change to a contract that benefits one part over the other represents a chance for the other party to cancel the contract without facing any penalties or fees.”
Where/how? Is this true? I’d love to get out of AT&T.
That’s true for every contract. One party cannot unilaterally alter a contract without the other’s agreement.
Class Actions for things like this are illogical. They make more sense when compiling arbiters who’ve been truly victimized, such as Company X is dumping toxic waste in our backyards and our babies have hooves, four arms, look like the mailman, etc.
Not sure what AT&T is thinking here, but it does make me angry. This is essentially an admission that the service is sub-par and it recognizes the potentiality of customers rising up.
Rather than working to make services better, AT&T is choosing the route of legal befuddlement. The likelihood of this particular clause being legally sound is virtually null, but it will slow legal processes and potentially dissuade some individuals from exercising their rights as citizens/consumers.
It’s not dumb unless you don’t know how to add. AT&T is doing this because of mounting criticism of the failure of its network in major metro areas. Whenever I travel to the bay area I’m immediately met with “No Service”. And this isn’t just a 3G problem. The bottom line is they sell more contracts than they have capacity to service to the level their agreement and their advertising stipulates. The extent of the problem and their inability to fix it now for years does absolutely open them up to class action lawsuits that could total in the 100s of millions.
As for the ability to get out of the contract, there could be issues there. Yes, by law if one party changes a contract to benefit them over the other party you can void the contract, but not if the contract you signed gives the other party the right to do this. If you read credit card or wireless plan agreements it’s included that they can change the terms at any time.
Maybe the author should have actually read their agreement with AT&T in addition to the “10 minutes” of research before firing off this post.
Well, it’s true but only if you’re under an old contract where this clause is not present…
The author is not presenting all of the facts:
Basically, if you sign your agreement with this clause included you’ve signed away your “rights”…
So, for those poor souls that already went ahead — too bad, so sad try and call a lawyer…
Not necessarily. There are certain “inalienable rights” given to American citizens that are upheld by the legal system. Signing a shaky contract doesn’t negate them.
That said, this would almost assuredly fall under contra formam statuti and potentially contra bonos mores.
seriously? You want me to now go look up these terms? I am not a lawyer.
He just made those up
Tom is right. I just invented legalese.
Does anyone know when this changed? I’d love to get out of my contract.
I remember getting a mail from AT&T on this issue about 4~5 months back. If you are really interested, I can dig up and find the exact date.
Ambuj, I am very interested if you do happen to have that information…
Thanks in advance!
Okay guys. I have an update. I checked my past bills and found out that they mailed me this change of Terms and Condition in March 2009 (with my February wireless bill). I am pretty sure that others would have also got a copy of it in their February bills.
I think this extract from the arbitration agreement is of relevance:
“Notwithstanding any provision in this Agreement to the contrary, we agree that if AT&T makes any future change to this arbitration provision (other than a change to the Notice Address) during your Service Commitment, you may reject any such change by sending us written notice within 30 days of change to the Arbitration Notice Address provided above. By rejecting any future change, you are agreeing that you will arbitrate any dispute between us in accordance with this provision.”
This means that if you reject this change within 30 days of being made aware of it, you can continue with the previous version of the Arbitration agreement (I am assuming the previous version also had this clause). But if AT&T indeed changed it in March, the deadline is long gone.
Thanks for checking Ambuj. I can’t believe this has been in the contract for about 6 months before hitting Slashdot and TechCrunch.
I just spent a half hour on the phone with AT&T only to have them tell me that it’s been this way for a long time and was not a recent addition. I would also love to see when this was added exactly, or even a saved contract from a couple months back to see if it was in the contract then.
Do you mean it was implemented much before February 2009?
I don’t think that’s really a legally binding clause anyhow. You can’t sell/trade/rent out your rights, if you sign a contract agreeing to be a slave and give up your vote to AT&T the contract doesn’t hold up in court, it’ll be interesting to see how the federal government handles this one though. Given how the Feds typically take their position under corporate desks and do their monitoring from said position they’ll probably side with AT&T. either way I think I’d rather have to deal with 1 Class Action instead of a hundred or thousand individual lawsuits if I were AT&T.
This is actually probably better for AT&T customers in the long haul.
1. A class action lawsuit regarding the agreement, note the wording of the line, would imply that you believe that AT&T already breached contract somehow, throws out the whole contract.
2. State court typically votes in favor of the plaintiff, Federal (all Class action suits are Federal) more often go defendant.
3. Usually large corporations will try to roll redundant cases over to Class action because they have a lowered legal cost and payout per complaint goes way down.
4. Every time they try to make a boneheaded move like this you get the chance to leave free and clear.
You lose the right to sue for the little stuff, but most AT&T customers are so happy with their iPhone that their could be a Sodomy clause and they’d still be smiling.
Good thing I am not using AT&T, though I am sure contract changes could occur with any carrier if they discovered an issue. It has happen with many online MMOs where they would change the EULA when they found or were taken advantage of by a mistake.
yes, its a good thing i do not have any phone contracts (not land line nor mobile). I simly go outside my building and put two quarters in the machine when i need to make a phone call (rarely), or tell the homeless guy that sleeps next to it to write down any incoming messages from the same payphone.
this is how it was done in the 80’s and 90’s, no reason it cant work today. plus, there is less of a chance of ‘big brother’ tracking you down. cash transactions only, and payphones wherever you can.
Wow! You’re the man! What are you doing tonight?
Can we file a class action for how their mobile phone don’t ring / miss calls, and voicemails don’t show up? I’m assuming the contract doesn’t say they’ll actually provide reliable service, but still think it should be expected. I would totally join a class action given that the service essentially doesn’t work.
If this were to be true and hold up…I’d love to give the AT&T dolts a swift kick out the door and head for Verizon as well. Guess I’ll wait an see how this plays out first.
The may not be banning class action lawsuits in the courts. Here is an alternative interpretation:
http://www.intoyourheadpodcast.com/blogpressexperiment/?p=796
This is not new news – I received the notice of this policy change in my April/May bill. Chances are you did too, in which case it’s too late to refuse the policy change and get out of your AT&T contract.
Check your recent bills to see when you were notified of this change (AT&T must notify you in writing) and go from there.
To be clear, I think this is a change that benefits AT&T and not its customers, and I doubt that AT&T can force you to waive this right in all states and situations.
“mobile phone” = phones on their mobile service
It’s just like the credit card companies – they and Congress are always changing the rules to make it better for themselves.
Had a CC company buy up one of the other CC companies a few years back and then changed my interest rate – I called and they said they could because they were not the original holders of my agreement – card was cancelled immediately.
HollyM
http://www.thessayist.com
and hey at least their better than Sprint. When sprint found out they sucked all they did was lower rates, improve customer service and get better phones. those lazy bastards at sprint.
I noticed that the following entry started appearing in my AT&T bill in MARCH:
NOTICE OF REVISED ARBITRATION CLAUSE IN CONTRACT
We wish to inform you that, effective immediately, AT&T has revised the arbitration
clause in your Wireless Service Agreement. For more information, please
visit http://www.att.com/disputeresolution
Is it too late to try to cancel without the ETF?
are they allowed to disallow this?
I’m almost sure they’re not allowed to arbitrarily change your contract without a notification and a signature. I’d call shenanigans.
Hmmm…..so can I do the same with my credit card when they unexpectedly raise my interest rate for no reason?
nah I think it only applies to TOS. You signed a contract that allows for variable interest based on factors outside of the banks control.
but it’s generally not that hard to lower your credit card rates. you just have to call and ask….and be willing to spend some time on the phone haggling. this is a common practice – they are used to it and expect it.
Ma bell turning psycho stepmom. The FCC needs to do the MFJ all over again – break her up. And while at it, do Verizon too.
+1 !
Once again, the government is the only solution
has anyone called att to try to break their contract? this is the exact ‘thing’ i’ve been waiting for to break the F out of my at&t jail.
hey, can you help??? as a reader I need more info to make a decision or call AT&T……… when did the change in the contract occur and until when do I have time to cancel the contract if I don’t agree on the new terms
Also interested.
thx @jimbojones
If you follow the link above (http://www.att.com/disputeresolution) and scroll to the bottom, you will see the text
Privacy Policy updated 06-11-09
In the privacy policy, it states that you have 30 days to notify them in writing that you reject the changes, so Im assuming that its too late to do anything about it now.
Wouldn’t this be a Materially Adverse change much like changing text messaging rates and be sufficient to let you out of the contract?
This all your fault techcrunch, if you hadn’t been reporting on stupid twitter blackouts and your lazy daily posts on twitter, we would have found out about this way sooner. Thank you very much
If you follow the link above (http://www.att.com/disputeresolution) and scroll to the bottom, you will see the text
Privacy Policy updated 06-11-09
In the privacy policy, it states that you have 30 days to notify them in writing that you reject the changes, so Im assuming that its too late to do anything about it now.
So, as someone stated earlier- If you use this as a way to get out of your contract and upgrade to the 3GS how would that affect your current phone if you are still within the original 2 years? Basically, what I am asking is since the iphone i currently have (3G) was given to me at a lower cost based on a 2-year contract, do I lose the phone as well or have to pay more for it?
I think the main function of the class action lawsuit in a case like this is usually to end the unfair practices the company is engaging in. Usually the goal of the class action lawsuit in a situation like this would be to force AT&T to offer better terms to their iPhone users and minimize restrictions or alter the rates. There was a similar class action against AT&T not long ago and I got a check for pennies but the important thing was that the rate changed so I wasn’t being ripped off anymore.
Too bad AT&T is doing more evil… I have really be debating on getting an iPhone – a buddy at work has one and he confirms all the great things the techies out there say about it.
However…
I have this thing about AT&T – they had very poor customer service the last time I had them; they helped the gov’t illegally intercept communications (claiming it was their patriotic duty – but then they cut off wire-taps with legitimate warrants due to the bills being paid late); their coverage is not as good as other cell companies.
So, it was an internal battle – coolness and utility of iPhone vs. AT&T’s levels of evil. This one settles it.
Up yours, AT&T.
>their coverage is not as good as other cell companies.
only verizon has a better network. and even that’s debatable to some extent.
arrington should try and get his $175 back considering this must have been changed before he cancelled. pave the way for the rest of us
doesn’t matter much what it says in AT&T’s contracts. you can’t sign away basic rights (such as your right to legal remedies) and companies can’t sign away basic responsibilities (such as not violating the law, not being negligent etc).
If I am not mistaken when you sign a two year agreement there can be no changes without a re-issue and acknowledgement of acceptance. Also if your contract has expired and you do not upgrade as I have not done since I got an iPhone several years ago there is no contract enforced.
Not a good thing when a company puts it into a contract that you cannot participate in a class action lawsuit. Surely they have something to hide? Or are they just trying to cover their butts? Hard to tell, but I bet there’s a lawyer out there that will be able to get around this one.
Loosers! Now learn to buy an unlocked GSM phone and buy just the SIM card from the operator with the cheaper price for the Data/Voice you need. When you get upset, just port your number to another operator and keep using your phone.
By the way, the cool phones that the AT&T and T-Mobile don’t offer for US, you can buy unlocked directly from Nokia.
iphones can’t accept a SIM card. And frankly most other phones suck ass so no dice here buddy.
while that’s funny and all, he may have meant that you it doesn’t accept non-att sim cards which is true at least for the ones you buy in the US (yeah, I know, you can jailbreak and unlock it).
And it is spelled “losers”, you moron! Only a loser like yourself would spell it “loosers”. LOL!
OWNED !
I called AT&T and they said do not have to release the contract since they’ve always had an arbitration clause and this, in their eyes, does not alter the contract with AT&T. Therefore, it would likely take a yelling match of some sort with AT&T customer service in order to get out of your current contract.
yeah people must not pay attention to their contract because this is nothing new. they use this when they feel fit but they’ve always had this type of clause with similar language. i just told them if they didn’t realease me i would come hell or high water raise a big stink for the company publicly and use the media. hey if they can do this i can lie too.
people just need to read their bills. they always say this and this will start this date and you have up until this period to get out of it if you want to.
this has absolutely nothing to do with the issue at hand. nice try though.
This argument is invalid because it doesn’t scale. Imagine a scenario where Evil Corp. sends a 1200 page update to their ToS. The only way to protect yourself would be to read the document in its entirety. If anyone actually did read the thing, the next one would be long enough to render its reading physically impossible, but you’d be bound by its content regardless.
Fail.
Unfortunately, under the consertive Supreme Court we have had since the 1980’s, companies CAN require you to give up your right to due process in the courts via an arbitration clause, and the US Supreme Court has upheld those clauses. This is a variation on that process, and federally it may well stand up given the record of the Roberts Court, that has been VERY agressive in overturning precedents and laws reference business regulation when they favor consumers. State laws may trump this, unless there was a federal law passed, i.e. some changes made to banking laws and regulations under Bush and the Republican congress.
Please note that even if effectively you cannot exercise that freedom, i.e. try to rent or purchase a house without signing an arbitration clause in most major metro areas, the courts still hold that waiving your right to a regular trial is perfectly fine as a prior condition before engaging in business transaction. This becomes interesting as it is very difficult to engage in regular everyday life in the US without a house/rental unit, a credit card, and sometimes even a cell phone.
FYI – since I also believe in gun rights, I’m not overly fond of liberal judges either. But when it comes to the rights of the individual when dealing with businesses, I don’t like conservative judges either.
It’s not the arbitration clause, per se – they are perfectly reasonable legal instruments. It’s the way they’re implemented, essentially forcing them on consumers. The system is often rigged in the corporation’s favor with the company alone selecting the arbitrator, large upfront costs, and there being no further legal recourse.
when was the last time your read the FCRA; Fair credit reporting Act. It states you have rights but that the FTC really can’t enforce written law because of the cost of enforcement. kThxBye
They cannot change the terms of a two year contract without offering consideration to you. Also, you must accept the change.
This provision would not apply to people who signed up before the change.
Hmmm. Apparently they’ve forgotten about Ting v. AT&T.
Mmm If I recall correctly, by changing the contract the law gives you the option to cancel without prejudice (fee’s).
So, anyone for a class action lawsuit against AT&T for preventing us from making class action lawsuits?
I just read the AT&T Service contract this weekend and am thoroughly convinced that whoever wrote this following clause up was high as a kite on crack:
“UNAUTHORIZED CHARGES TO YOUR PHONE (CALIFORNIA CUSTOMERS ONLY)
You are not liable for charges you did not authorize, but the fact that a call was placed from your phone is evidence that the call was authorized.”
I’m sorry, what?
So, in other words, if my phone gets stolen I had better hope that the thief is kind enough to not place any phone calls on it until *after* I’ve reported it stolen, then… right?
Having trouble trying to cancel using this excuse – they claim they can change ANYTHING in your contract and they only have to notify you…you just have to take it. B/S! — Now I’m on hold for 20 minutes for a supervisor who refuses to call me back…I HAVE to sit on the line for 20 mins…Still trying to waive the ETF…but even if they don’t I’m so pissed at them I’m leaving! Screw you AT&T!!
why doesnt anyone on this page like their iphone?
Because it’s connected to AT&T.
Lol, I was writing it when you said it – priceless