AT&T has agreed to pay a $700,000 fine to the U.S. Treasury for unfairly forcing pay-as-you-go wireless data customers into monthly data plans. The wireless provider has also agreed to refund the customers who were affected, and to return them to their grandfathered-in pay-as-you-go plans (if they’re still eligible).
In 2009, AT&T started requiring that all customers purchasing new smartphones also purchase a monthly subscription-based data plan. However, AT&T assured its existing customers on pay-as-you-go data plans that their plans would be protected and grandfathered-in indefinitely. So long as existing customers did not purchase new AT&T-subsidized smartphones, their pay-as-you-go plans were (supposedly) protected.
But it turns out that some grandfathered-in customers were still forced into monthly data plan subscriptions, which cost around $30/month. This happened when customers replaced old handsets using a warranty or insurance, or when customers moved to different parts of the United States. AT&T specifically promised that such situations – replacing old handsets or moving to a different part of the country – would not affect customers’ data plans.
The Federal Communications Commission (FCC) began investigating customer complaints about a year ago. As a result of the investigations, AT&T has signed a consent decree (PDF) in which it has agreed to pay a $700,000 fine and refund affected customers. The company has also agreed to revert affected customers’ plans back to pay-as-you-go data plans if they are still eligible – that is, if they have not purchased a new AT&T-subsidized smartphone.
“Today’s action sends a clear signal that wireless carriers can’t wrongfully charge customers,” FCC Chairman Julius Genachowski said in a statement. “These strong FCC accountability measures will ensure customers are not over-charged.”
As part of the consent decree, AT&T will be providing a bill-page notice to affected customers. The notice will offer the customer a refund and will give them the option of switching back to their pay-as-you-go plan.
Still, if you’re an AT&T customer it’s a good idea to go back and check your records – don’t just sit around and wait for the company to offer up a refund. Remember, this only affects you if you at one point had an AT&T pay-as-you-go plan.
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