Unhappy iPhone and iPad Users Must Submit to Arbitration over Excessive Data Charge Claims

A new class action filed against AT&T Mobility will stay out of court, for now. The case, filed on behalf of iPhone and iPad users, who are alleging AT&T overbilled them for data use, perhaps by as much as 300% will not be allowed its day in court unless and until the case is heard in arbitration. The iPhone contract states that it, “requires the use of arbitration on an individual basis to resolve disputes, rather than jury trials or class actions, and also limits the remedies available … in the event of a suit.”

The class action sought various remedies including restitution damages for breach of contract, unfair and fraudulent business practices, unfair competition, unjust enrichment, and further claimed there were potential violations of the Federal Communications Act.

Arbitration Clauses and Contract Law

If the relevant contract states that the arbitration is binding, that means that the decision itself, here whether there were excessive charges, would be binding. The arbitration clause itself, however, may be separately challengable. Thus, aside from winning a favorable decision in arbitration, the class isn’t entirely without remedy, and may eventually be able to challenge the arbitration clause in court.

This case serves as a reminder that the laws are in place for our protection, and consumers should not hesitate to contact an attorney if they feel they have been wronged. LawInfo.com has a wide variety of content designed to inform you of your legal rights as well as what actions to take if you feel you have been wronged. You can also learn more about Contract Law or Class Action Lawsuits.