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Apple to pay $40 per iPad 3G user to settle class action suit over revoked AT&T unlimited data plans

post #1 of 70
Thread Starter 
Some cellular-enabled iPad owners may soon receive a check from Apple, as a proposed joint settlement with AT&T looks to bring an end to a long-running class action suit over the cell provider's promise and ultimate cancellation of unlimited data.



A US district court judge in San Jose approved a proposed settlement from the two companies on Thursday, according to Law360. Under the proposed plan, Apple will pay $40 to everyone in the United States who bought or ordered a 3G-enabled iPad on or before June 7, 2010.

Additionally, cellular-enabled iPad owners who did not sign up with AT&T will get a $20 per month discount on the telecom's 5GB per month plan for up to a year.

The class action suit is looking to rectify an issue iPad buyers faced after purchasing the tablet. Some customers may have based their decision to buy at least in part on the promise of unlimited data through AT&T, which was the first U.S. carrier to offer the iPad with cellular capabilities. In a somewhat controversial move, the telecom nixed unlimited plans in 2010 in favor of a tiered model, citing bandwidth constraints.

At the time, data was capped at 2GB per month, but subscribers can now go as high as 5GB per month, which includes tethering to other devices. As a consolation to frustrated users, AT&T allows those unlimited data plans to continue their service as long as there is no break in payments. Device tethering is not offered for grandfathered all-you-can-eat plans and once a subscriber switches to a tiered option, they cannot return to unlimited.

The deal is subject to final approval, which is expected in February of 2014. At that point, Apple will begin contacting all eligible customers to inform them of their pending settlement check.

Those who no longer own their original iPad will still be eligible for the deal as long as they didn't sign on to an AT&T data plan with that device, due to a no-class action clause in the carrier's contracts.

post #2 of 70
...and this is Apple's fault, how?
post #3 of 70
I am at a loss. Why is Apple paying out instead of at&t? Isn't this a carrier issue pure and simple?
post #4 of 70
Odd, I'd have thought that would have been AT&T's responsibility? It was their plan after all that they changed.
post #5 of 70
So the no-class action clauses are actually valid?
post #6 of 70
Quote:
Originally Posted by lkrupp View Post

I am at a loss. Why is Apple paying out instead of at&t? Isn't this a carrier issue pure and simple?

I'd think so.

Unless Apple marketed the iPad + 3G as having unlimited data for $30/mo. without having a contract with AT&T that specified how long that plan would stay in effect.

I don't recall their marketing specifics, but I do remember the ability to sign up for as little as a month at a time as a feature.
post #7 of 70
Quote:
Originally Posted by Pendergast View Post

...and this is Apple's fault, how?

See page 10 in the Scribd link at the bottom of the article.
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post #8 of 70
Personally, I'd accept the ability to resume my AT&T unlimited iPad data plan subscription. I'd pick up a new microSIM card right now and put it in my iPad mini.
post #9 of 70
Quote:
Originally Posted by Gatorguy View Post

See page 10 in the Scribd link at the bottom of the article.

The only thing I see is that they alleged that the promise of unlimited data caused them to overpay for their iPad 3G. That, by itself, doesn't make it Apple's fault. Apple can not be held liable for an AT&T promise. If, OTOH, APPLE is the one who promised unlimited data, then Apple would be liable. It appears that the plaintiff was arguing that Apple did, indeed, make such a promise and Apple either agreed that they had made the promise or felt that it would cost more to fight it than to settle.
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post #10 of 70
Quote:
Originally Posted by BeyondtheTech View Post

Personally, I'd accept the ability to resume my AT&T unlimited iPad data plan subscription. I'd pick up a new microSIM card right now and put it in my iPad mini.

As their portion of the overall settlement ATT will give you $20 off a month on a 5GB 3G data plan for the next year. 1hmm.gif
Edited by Gatorguy - 9/27/13 at 3:59pm
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post #11 of 70
Quote:
Originally Posted by jragosta View Post

The only thing I see is that they alleged that the promise of unlimited data caused them to overpay for their iPad 3G. That, by itself, doesn't make it Apple's fault. Apple can not be held liable for an AT&T promise. If, OTOH, APPLE is the one who promised unlimited data, then Apple would be liable. It appears that the plaintiff was arguing that Apple did, indeed, make such a promise and Apple either agreed that they had made the promise or felt that it would cost more to fight it than to settle.

Apple wasn't held to be liable. It was an Apple proposal that was accepted.
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post #12 of 70
Originally Posted by Gatorguy View Post
See page 10 in the Scribd link at the bottom of the article.

 

So page 10 of 30 page 10, page 4 of brief page 10, or page 10 of brief page 10?

Be specific.

 

 

Off topic: No one has mentioned this yet: I really like how Mavericks groups selections. That’s a long time coming.

 

Even further off topic: I really hate how AI crashes every single time I edit a post since the software hasn’t been updated for Mavericks.


Edited by Tallest Skil - 9/27/13 at 4:00pm

Originally posted by Relic

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post #13 of 70
Quote:
Originally Posted by Tallest Skil View Post

 

So page 10 of 30 page 10, page 4 of brief page 10, or page 10 of brief page 10?

Page 10 of 30.
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post #14 of 70
Originally Posted by Gatorguy View Post
Page 10 of 30.

 

And that’d be…

 
These four consolidated class actions were filed between June and November 2010. A Master Consolidated Complaint (“MCC”) was filed on December 10, 2010 on behalf of customers who purchased iPads with 3G capability (“iPad3G”) during the period when the product was first offered for sale. Plaintiffs alleged that defendants promoted flexible access to an “unlimited” 3G data plan, and then discontinued the unlimited plan soon after the initial wave of iPad3G purchases. Plaintiffs alleged that this conduct harmed them and the other proposed class members by: (a) causing them to overpay for their iPad3Gs; and (b) depriving them of promised access to an unlimited data plan. The MCC included claims for intentional misrepresentation, fraud/false promise, negligent misrepresentation, unjust enrichment, and violations of Cal. Civ. Code 1750

 

This, I’m guessing. 

 

Aaaaand it’s Apple’s fault that AT&T changed its plans… why?

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post #15 of 70
Quote:
Originally Posted by Tallest Skil View Post
 
ven further off topic: I really hate how AI crashes every single time I edit a post since the software hasn’t been updated for Mavericks.

Perhaps they are waiting for Mavericks to be released. You never know, it could be a flaw in Mavericks which might be fixed by the time it is released. Unless you have a working relationship with the OS development team it could very well be a waste of time to try to troubleshoot something that will be resolved on their end. Keep in mind that AI would have to contract Huddler to do the the recoding so it is best to wait. It is likely a Safari issue so in the meantime you could try a different browser to access AI. After all AI isn't crashing it is your computer. AI is still serving pages to those of us on stable OS releases.

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post #16 of 70
Woo hoo! I'm soon to be $40 richer!
post #17 of 70
So when do i get my check?
post #18 of 70
just bought today a mac book air so the $40.00 are vey welcome!!
post #19 of 70
Well, I got the unlimited plan under the assumption that I could pay $30 for any month when I needed data. A month later they cancelled it. Fortunately, I got in under the wire -- I still have the unlimited plan. OTOH, I've had to keep that plan "hot" at $30/mo since then or lose it.
Most I've used (watching videos) has been about 5 gig/mo, though that's largely because I have a 5 gig plan on my iPhone (gave up unlimited there to get tethering) which I tend to use up at the end of each month in order to "get my money's worth".

I could bitch about the fact that I can't cancel my data plan. OTOH, I've used cellular data every month and I don't know if I could have gotten by without it for any particular month (came close a couple of times when I was out of the country for several weeks).

FWIW, giving up unlimited data on the iPhone to get tethering was one of the best decisions I ever made. Particularly with the unlimited data plan on my iPad, I just don't use that much data on my phone -- except via tethering.

OTOH, I won't turn away a $40 check if I get one 1smile.gif
post #20 of 70
Quote:
Originally Posted by Pendergast View Post

...and this is Apple's fault, how?

It was a selling point for the iPad and it lasted what 2 months, once AT&T decided to change the plan Apple should've interceded on behalf of its users.
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post #21 of 70
Quote:
Originally Posted by Tallest Skil View Post

Aaaaand it’s Apple’s fault that AT&T changed its plans… why?

Question is why did Apple do nothing when AT&T changed its plans. I can understand a year later but not even 2 months. They made SJ look like a liar.
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post #22 of 70
Quote:
Originally Posted by rhyde View Post

Well, I got the unlimited plan under the assumption that I could pay $30 for any month when I needed data. A month later they cancelled it. Fortunately, I got in under the wire -- I still have the unlimited plan. OTOH, I've had to keep that plan "hot" at $30/mo since then or lose it.
Most I've used (watching videos) has been about 5 gig/mo, though that's largely because I have a 5 gig plan on my iPhone (gave up unlimited there to get tethering) which I tend to use up at the end of each month in order to "get my money's worth".

I could bitch about the fact that I can't cancel my data plan. OTOH, I've used cellular data every month and I don't know if I could have gotten by without it for any particular month (came close a couple of times when I was out of the country for several weeks).

FWIW, giving up unlimited data on the iPhone to get tethering was one of the best decisions I ever made. Particularly with the unlimited data plan on my iPad, I just don't use that much data on my phone -- except via tethering.

OTOH, I won't turn away a $40 check if I get one 1smile.gif

 

I could have stayed on the unlimited plan but when they switched to 5 gig if you went over they throttled you. With the 5 gig plan they just charge you another $10 per gig over which is the same price per gig you were paying to start with. Better than being throttled.

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post #23 of 70
Originally Posted by dasanman69 View Post
Question is why did Apple do nothing when AT&T changed its plans.

 

Because they had no power to? Because it’s not up to them?

 
They made SJ look like a liar.

 

Uh… huh. Tell me, where in any of Apple’s advertising–where even in the keynote–does that even begin to be a point of debate? Did Steve Jobs promise unlimited data for all eternity? Did Apple?

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post #24 of 70
Quote:
Originally Posted by Tallest Skil View Post

Because they had no power to? Because it’s not up to them?

Uh… huh. Tell me, where in any of Apple’s advertising–where even in the keynote–does that even begin to be a point of debate? Did Steve Jobs promise unlimited data for all eternity? Did Apple?

Who negotiates a data plan for its users and doesn't get a guaranteed time frame? Of course not for eternity, but not more than 2 months was ridiculous.
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post #25 of 70
Quote:
Originally Posted by Gatorguy View Post

Apple wasn't held to be liable. It was an Apple proposal that was accepted.

I never said that they were held to be liable. I said that they COULD BE if they had made a promise.

I also made it clear that Apple settled:
"Apple either agreed that they had made the promise or felt that it would cost more to fight it than to settle."

But, then, reading comprehension was never your strong point.
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post #26 of 70
AT&T got off easy. They should be forced to provide all owners of the above mention iPads unlimited data for as long as those owners want to keep their plans. AT&T is one of the worst companies when It comes to customer service and billing. I always get puzzling charges on my bill. Always gotta call they fix it and the next month it's something else. They kept changing my contract end date. Always, always something. AT&T should have been spanked by our legal system but got away with it. Big corporate America is well taken care of in the country. Seems like Apple got spanked a little more than AT&T. Why?
post #27 of 70
Quote:
Originally Posted by lkrupp View Post

I am at a loss. Why is Apple paying out instead of at&t? Isn't this a carrier issue pure and simple?

SJ specifically states "we got 2 awesome plans for iPad owners"
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post #28 of 70
Originally Posted by dasanman69 View Post
SJ specifically states "we got 2 awesome plans for iPad owners"

 

We. Apple. Apple. Apple is comprised of more than one person. Apple created the iPad.

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post #29 of 70
Quote:
Originally Posted by Tallest Skil View Post

We. Apple. Apple. Apple is comprised of more than one person. Apple created the iPad.

And we (according to TS, Apple) got breakthrough plans that lasted only one month, and that's why we ( again according to TS, Apple) was sued instead of AT&T.
Edited by dasanman69 - 9/27/13 at 7:00pm
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post #30 of 70
Originally Posted by dasanman69 View Post
And Apple got breakthrough plans that lasted only one month, and that's why Apple was sued instead of AT&T.

 

Whenever you’re ready to make sense, feel free. I guess I could sue Apple for only selling the 4GB iPhone for two months, huh¡

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post #31 of 70
Quote:
Originally Posted by Tallest Skil View Post

Whenever you’re ready to make sense, feel free. I guess I could sue Apple for only selling the 4GB iPhone for two months, huh¡

There I edited it so it makes more sense and yes you could sue whomever for whatever as you please.
Edited by dasanman69 - 9/27/13 at 7:07pm
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post #32 of 70
Originally Posted by dasanman69 View Post
There I edited it so it makes more sense

 

Makes less sense now.

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post #33 of 70
Quote:
Originally Posted by dasanman69 View Post

SJ specifically states "we got 2 awesome plans for iPad owners"


Sounds to me like AT&T and Apple got a sweetheart deal together
post #34 of 70
Quote:
Originally Posted by rlevtzow View Post

Sounds to me like AT&T and Apple got a sweetheart deal together
post #35 of 70
Quote:
Originally Posted by Tallest Skil View Post

Makes less sense now.

Then do this, switch Apple to Samsung and not only will it make sense but you would've been the first to comment laughing at how Samsung screwed it's users and had no power over the carriers unlike Apple.
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post #36 of 70
It's not a bad deal but they both agreed that some point what was going to be the data plans somehow Apple dictated to AT&T and they both agreed that this would be the way it is
post #37 of 70
Quote:
Originally Posted by rlevtzow View Post

Sounds to me like AT&T and Apple got a sweetheart deal together

They did, too bad the marriage was annulled after a month.
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post #38 of 70
Originally Posted by dasanman69 View Post
Then do this, switch Apple to Samsung and not only will it make sense but you would've been the first to comment laughing at how Samsung screwed it's users and had no power over the carriers unlike Apple.

 

Is “Samsung” a telecom? Do they run a telephony service?

 

If you’ve no other argument than this, I rather think we’re done here.

Originally posted by Relic

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post #39 of 70
Too bad they've yet to own up to the defective power buttons on the 4 GSM. Guess what I've repaired two of this week for friends? Yup. It's a 4 dollar part and an hours labor for me. For apple it is a fraction of both, but lying about it is the cheaper course of action.
post #40 of 70
Why can't at&t subtract the rip off price and data to a much more feasible state? If they added double the data (or half the price) they would still be getting a big buck for little bang.
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