By Kat Asharya | Wed Aug 11, 2010 1:33 pm |
T-Mobile has been hit with a class action lawsuit for allegedly marketing certain data plans as "unlimited" but then reducing available data usage once customers come under contract.
The suit, filed by Trent Alvarez, a T-Mobile subscriber, alleges that the Bellevue, Wash.-based carrier, which advertises an "Unlimited Web and Email" plan, "expressly represented that the data plan to be receive would be unlimited."
Instead, Alvarez said he received a message from T-Mobile informing him that his data usage had exceeded 10-gigabyes and his speeds would be capped at 50 kilobytes per second or less.
"The limits makes Alvarez's phone essentially useless for anything other than making or receiving phone calls and text messages," the suit said. It also claimed that T-Mobile commonly uses the practice, called "bandwidth throttling," to mislead its customers -- only warning them of the restriction with fine print on the last page of its brochure.
"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," the brochure said.
"Consumers are likely to be misled by T-Mobile's promise of 'unlimited' data," the lawsuit added.
The class action suit is seeking restitution for the money that customers spent on smartphones and the accompanying plans. It also requests an injunction against further deceptive advertising.
A similar legal action was brought against Verizon by New York Attorney General Andrew Cuomo, who alleged in 2007 that the company had capped data usage on similarly marketed "unlimited" plans. Verizon settled that suit for $1 million.
With the rising usage of smartphones, T-Mobile competitors like Verizon and AT&T are halting no-limit data plans in favor of tiered service with capped usage.
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