Throwing the Book at AT&T and Apple
The iPad 3G data plan offered by AT&T seemed like a grand deal when first announced at the iPad’s January 27 unveiling of the device. Those opting for the unlimited data plan would be able to do so, contract-free for $30 per month. Alternatively, if you wanted only wanted to use 250 MB of 3G data, you could do so for a scant $15 per month. That is until the bait and switch occurred June 2nd.
AT&T, one of, if not the most hated wireless carrier on the planet and possibly the entire galaxy, revealed that the unlimited 3G data plan was being done away with in favor of a plan offering 2GB of data for $25 per month. Consumers were, well, let’s just say, not pleased.
The end of unlimited data plans meant the beginning of the legal battle. Friday, a class action lawsuit has been filed against both Apple and AT&T, claiming misrepresentation and fraud. In particular, those filing suit allege Apple and AT&T “deceptively promoted” the 3G iPad. Specifically, the plaintiffs in the nationwide suit allege that both Apple and AT&T “deceptively promoted” the data options available to customers. While current unlimited data subscribers could keep their unlimited data plans, should they decide to choose a lower priced data plan for one month, the consumer would lose the option to return to the unlimited option.
One of the selling points of the 3G iPad were the 3G data options, which AT&T abruptly changed not only on those that already owned an 3G iPad, but those that had ordered prior to the announced data plan changes, but who had to wait on their device to arrive due to supply shortages. To one with a legal background, or anyone with half a brain, AT&T’s actions are an example of a classic bait and switch. Apple’s role in the whole issue is a little less clear. While it is possible that they knew of AT&T’s plans to change their 3G data pricing structure, nothing is certain and it will be interesting to see what evidence comes to light if and when there is a trial.
Will the plaintiff’s case succeed? Is AT&T guilty of a bait and switch? Is Apple?
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