Telecommunications Class Actions: Fighting Unfair Billing and Practices

Introduction

Telecommunications companies have faced numerous class action lawsuits in recent years as consumers fight back against what they perceive as unfair billing practices, hidden fees, and deceptive advertising. These lawsuits have targeted major providers across phone, internet, and cable services, resulting in significant settlements and changes to industry practices.

In this article, we'll examine common issues that lead to telecom class actions, highlight some notable cases, and explain how consumers can participate in these lawsuits to recover charges they shouldn't have paid. We'll also discuss how class actions have helped reshape certain telecom industry practices to better protect consumers.

Unfair Billing Practices

One of the most common issues leading to telecom class actions is unfair billing practices. These can include:

• Overbilling: Charging customers for services they didn't order or receive
• Unauthorized charges: Adding services or features without customer consent
• Billing errors: Systematic errors that result in overcharges across many accounts
• Failure to honor promotions: Not applying promised discounts or promotional rates

For example, in 2020, Frontier Communications agreed to a $2.9 million settlement in a class action alleging the company charged customers for internet speeds it couldn't deliver. The lawsuit claimed Frontier sold high-speed internet service to customers whose locations couldn't technically support those speeds, then refused to downgrade their service or reduce their bills.

Similarly, Sprint faced a class action over allegations it charged customers for unwanted third-party services through a practice known as "cramming." The company ultimately agreed to a $7.5 million settlement to resolve these claims.

Hidden Fees and Surcharges

Telecommunications providers are notorious for advertising one rate, then adding various fees and surcharges that significantly increase the actual amount customers pay. These practices have led to numerous class actions, including:

• CenturyLink: Settled a class action for $15.5 million over claims it billed customers at higher rates than promised by sales representatives
• Comcast: Faced a class action alleging it misrepresented the cost of service by not clearly disclosing its "Broadcast TV Fee" and "Regional Sports Fee" in advertised prices
• AT&T: Settled claims related to its "Administrative Fee" which consumers alleged was simply a way to increase the effective price of service without raising the advertised rate

In many of these cases, the companies were accused of using these fees to effectively raise rates without technically breaking promises about fixed-rate contracts or advertised pricing. The settlements often not only provided refunds to affected customers but also required more transparent disclosure of fees in future advertising and billing.

Data Throttling and Service Limitations

As mobile data usage has increased, so have class actions related to how providers manage data plans and throttle connections. Some notable cases include:

AT&T faced a high-profile class action and FTC lawsuit regarding its practice of throttling data speeds for customers with "unlimited" data plans after they reached certain usage thresholds. The company ultimately settled for $60 million, with the settlement funds distributed to affected customers who had experienced throttling.

Similarly, T-Mobile faced a class action over its "unlimited" data plans that throttled speeds after customers reached a certain data usage level. The lawsuit alleged that this practice was not adequately disclosed to customers, making the "unlimited" marketing claim misleading.

These cases highlight the tension between marketing practices that promote "unlimited" services and the technical and business realities of managing network capacity. The resulting settlements have generally pushed companies toward more transparent disclosures about service limitations.

Deceptive Contract Terms

Telecommunications companies have also faced class actions over contract terms that consumers alleged were unfair or deceptive, including:

• Early termination fees: Verizon and other carriers faced class actions over excessive early termination fees that allegedly functioned as unlawful penalties rather than legitimate damage estimates
• Mandatory arbitration: While courts have generally upheld these clauses, they've been challenged in various class actions as unfair to consumers
• Automatic renewals: Some providers have been sued for automatically renewing contracts without sufficient notice to customers
• Unilateral contract changes: Class actions have challenged providers' ability to change contract terms mid-service without providing consumers an opportunity to cancel without penalty

For example, SiriusXM settled a class action for $35 million over allegations that it automatically renewed subscriptions and made it difficult for customers to cancel. The settlement not only provided compensation to affected customers but also required the company to improve its disclosures and cancellation processes.

How to Join a Telecom Class Action

If you're a customer of a telecommunications company that's facing a class action lawsuit, you may be entitled to compensation. Here's how the process typically works:

1. Notice: If a settlement is reached, the company is usually required to notify potentially affected customers by email, mail, or through bill inserts
2. Eligibility verification: The notice will explain who is eligible to participate in the settlement (the "class definition")
3. Claim filing: If you're eligible, you'll need to submit a claim form by the specified deadline, which can often be done online
4. Proof requirements: Some settlements require proof of your relationship with the company, such as account numbers or copies of bills
5. Payment distribution: After all claims are processed, payments are distributed according to the settlement terms

Services like GetBack can help you identify telecom class action settlements you may qualify for. This is particularly valuable since telecom companies may not always effectively notify all eligible customers about settlements.

Conclusion

Class action lawsuits have become an important tool for consumers to challenge unfair practices in the telecommunications industry. These lawsuits have resulted in substantial settlements that not only provide compensation to affected customers but also drive meaningful changes in how companies operate.

While individual overcharges might seem small—perhaps just a few dollars per month—the collective impact of these practices across millions of customers can amount to billions in improper charges. Class actions provide an efficient way to address these widespread but individually small harms.

If you're a telecommunications customer, it's worth staying informed about potential class actions against your provider. By participating in these lawsuits when eligible, you not only recover money that's rightfully yours but also contribute to broader efforts to ensure fair practices in the industry.