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story category If You Read Your Contract You Wouldn't Have A $5,000 3G Bill
AT&T sued for huge Acer netbook data bill...
(old news - 02:54PM Monday Mar 02 2009)
tags: prices · business · wireless · bandwidth · Op/Ed · consumers · caps
Tipped by Jim_in_VA See Profile
We've seen an endless flood of stories about people who don't read their wireless broadband contract, then get shocked when the bill comes due. Last week we discussed how customers in these stories fail to properly research what they're buying, and the carriers involved have a history of portraying limited wireless broadband services as unlimited. Carriers also often fail to give subscribers a heads up until the bill gets completely out of hand, and often don't cut the confused user slack until some local network affiliate does a consumer help segment.

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These stories usually involve a tethered smartphone or data card, but a new class action lawsuit filed against AT&T and Radioshack focuses on a netbook promotion being offered by the two companies. The promotion, which was unveiled back in December, offers users an Acer Aspire One for $100 if they sign a two year AT&T data contract. An excerpt of the complaint from RCR Wireless News:
"Although the customer service summary informed plaintiff and other consumers that their first bill might be higher than expected because of a $36 activation fee...neither plaintiff nor other consumers were informed, nor could they have reasonable discerned from the paper work that wireless Internet usage exceeding 5GB per month would result in astronomical charges running into the thousands of dollars."
While the Radio Shack promotion page doesn't mention the 5GB cap, AT&T's terms of service (pdf) clearly does (in bold print), the website does, and the overage fees you'll incur are very clearly labeled as well. AT&T 3G data users are also notified of the limit via the AT&T "communication manager" for data cards. While carriers used to have invisible caps they advertised as unlimited, a little pressure from NY's Attorney General largely put an end to that back in 2007. While some carriers (like Cricket) still engage in false advertising, AT&T does not.

A recent survey suggested that the vast majority of American consumers have no idea what a gigabyte is, or how many gigabytes they use. In other words, consumers are going to have to become more educated very quickly (unlikely), or carriers are going to have to engage in a lot more hand holding to make these types of stories stop.

Related:
  1. Cogeco Drops Metered Billing On Users
  2. Time Warner Cable: Let's Not Talk About Net Neutrality
  3. As Verizon Goes, So Goes Metered Billing
  4. Journal: AT&T Should Ditch $30 Unlimited Data
  5. Cable: Let Us Experiment With Pricing Or The Internet Explodes
  6. Mythbusters' Savage The Latest Socked With Huge 3G Bill
  7. Verizon's New, Ridiculous Wireless Data Prices
  8. Verizon's New Wireless Pricing Is An Insult

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