AT&T & Apple face lawsuits over data cap on iPad

iPad consumers are angered over AT&T’s new rate plans and the impact that they will have on iPad users.  AT&T’s new plans, which went into effect on June 7th, coordinating with the release of iPhone 4, no longer offer unlimited data.  For the new plan details, click here.   AT&T advertised that iPad users would have the ability to easily be able to opt in or out of unlimited data plans.  While, AT&T is allowing iPad users to keep unlimited data for now, if they skip a month, they will no longer be able go back to having unlimited data.

AT&T’s announcement of their new plans came very quickly after the release release of the 3G enabled iPad (which had previously only been available with Wi-Fi capability).  Consumers feel as though they have been tricked into either waiting to purchase the 3G iPad or trading in/ upgrading their Wi-Fi only iPad to the 3G version – only to find out that there are now data caps on the plans.  One customer was quoted on fiercebroadbandwireless.com as saying:

I originally purchased a standard iPad. Three weeks later, I returned it to the Apple store, paying an additional $130 plus sales tax to upgrade to an iPad with 3G capability. I thought the iPad 3G was worth the additional money because, with the unlimited data plan, I could work outside my office or home and access all the data I needed for a fixed, monthly price,” commented plaintiff Adam Weisblatt in a release distributed by law firm Lieff Cabraser Heimann & Bernstein. “But I also knew that for several months each year, with my schedule, a lesser expensive, limited data plan was sufficient. I would have never purchased a 3G-capable iPad if I knew Apple and AT&T were planning on suddenly taking away from me the freedom to opt in and out of an unlimited data plan at my choice.

The cellular companies have long been scrutinized for sucking consumers into long term contracts with large cancellation penalties, making new offers available only to those willing to sign more contracts and charging huge overage and equipment charges.  It seems, however, that the data plan caps have sent consumers over the edge.  The lawsuit being filed claims that AT&T and Apple used a “bait and switch” tactic that tricked consumers into purchasing the 3G capable iPad.  iPad users frustration is understandable, especially since both AT&T and Apple advertised the 3G enabled iPad as having a easy to use unlimited data option for so long and then switched the plan so soon after the 3G iPad release.

We will keep you posted on this situation as it unfolds!

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