ClassActionLawsuits.biz

Should unlimited data plans from the phone company have caps? Well, T-Mobile subscriber Trent Alvarez doesn’t think so. He claims that no where in his contract does T-Mobile USA disclose the cap on their unlimited data plans. Mr. Alvarez exceeded 10GB and T-Mobile then limited his data throughput to 50Kbps.  Mr. Alzarez is
claiming that T-Mobile is using false advertising when marketing it’s unlimited data plans and is filing a class action lawsuit in California.

Mr. Alvarez’s suit claims that after his data throughput was capped his phone became “essentially useless for anything other than making or receiving phone calls and text messages”. This is what is called bandwidth throttling. Basically the data provider claims unlimited usage but then, after a contract is signed, refers to the fine print on the last page of its brochure revealing that the data feed is actually capped.

The brochure says, “Your data session may be slowed, suspended, terminated, or restricted if you use your service in a way that interferes with or impacts our network or ability to provide quality service to other users.”

So, are consumers being misled by phone companies claims of unlimited data and phone usage? The class action lawsuit against T-Mobile USA thinks so. “Consumers are likely to be misled by T-Mobile’s promise of ‘unlimited’ data” the lawsuit states. The lawsuit is seeking an injunction against future deceptive advertising as well as monetary restitution for any money customers spent on the company’s phone plans and smart phones.

If you recall there was a similar lawsuit filed against Verizon a few years back in New York. Attorney General Andrew Cuomo alleged that the company had capped data usage even though they advertised unlimited plans. In the end Verizon settled out of court for $1 million. It should be interesting to see how T-Mobile responds in this case.