AT&T settles ETF case for $18m
By Nilay Patel 
posted January 26th 2010 4:13PM
posted January 26th 2010 4:13PM
Hey, if you're a Update: It's for all AT&T subs, not just the kids from the Shore.
Update 2: AT&T just sent us a statement about the settlement -- the carrier wants to highlight that it's the old ETFs that are involved here, and not the new pro-rated ones that we hate just as much. Check it:
Cool -- now let's talk about how customers who pay full price for handsets should pay a lower monthly fee that doesn't include an equipment subsidy. That's a policy we could totally get behind.We strongly deny any wrongdoing, and no court has found AT&T Mobility committed any wrongdoing regarding these fees. However, we have agreed to settle to avoid the burden and cost of further litigation.
It's important to note that the litigation involves old early termination fee policies of the old AT&T Wireless and Cingular. In 2008 we introduced a new, more flexible early termination fee policy, in which we pro-rate the ETF if you are a new or renewing wireless customer who enters a one- or two-year service agreement.
[Thanks, David]
Important Notice from the United States District Court for the District of New Jersey about a Class Action Settlement
Para ver este aviso en espanol, visita www.ATTMETFSettlement.com/espanol
A Class Action Settlement Could Affect Your Rights If You:
• Subscribed to wireless telephone service from AT&T Mobility LLC ("AT&T Mobility") or its predecessors and paid or were charged a flat-rate early termination fee ("ETF") at any time after January 1, 1998; or
• Your contract included a flat-rate ETF provision at any time after January 1, 1998.
A proposed Settlement has been reached in a class action alleging that AT&T Mobility's flat-rate ETF (generally between $150 and $175) was unlawful. The Settlement resolves several other cases that challenge AT&T Mobility's flat-rate ETF. AT&T Mobility strongly denies any wrongdoing, but has agreed to settle to avoid the burden and cost of further litigation. The sole purpose of this notice is to inform you of the Settlement so that you may decide what to do.
If the Settlement is approved, a settlement fund of $16,000,000 in cash and $2,000,000 in non-cash benefits will be created. Class Members who submit Claim Forms may receive monetary or other benefits. You may also choose to exclude yourself from, or object to, the Settlement. The Court has appointed attorneys to represent the Class. You may hire your own attorney, but only at your own expense.
For a full description of the Settlement, related Court documents, and deadlines and forms, please visit www.ATTMETFSettlement.com.
• Claim Forms are due June 14, 2010, but the date may be extended.
• Requests to exclude yourself from the Settlement must be submitted to the Settlement Administrator and are due March 24, 2010.
• You or your lawyer has the right to appear before the Court and object to the Settlement. Any objections to the Settlement are due March 24, 2010, and any objections to attorneys' fees requested are due April 12, 2010.
• The Court will determine whether to approve the Settlement at a Fairness Hearing on April 14, 2010 at 10:00 a.m. in the United States District Court for the District of New Jersey.
• If you do not exclude yourself by March 24, 2010 and you are a member of the Class, you will be bound by the terms of the Settlement and give up your rights to sue in court or arbitration regarding issues in the case.
You can get a Claim Form at www.ATTMETFSettlement.com/claimform by calling 1-888-228-0885 or
by writing the AT&T Mobility ETF Settlement Claims Administrator, c/o Rust Consulting, Inc., P.O. Box 2266, Faribault, MN 55021-2386.
Questions may also be directed to Class Counsel by email at info@ATTMETFSettlement.com.
Please do not contact AT&T Mobility or the Court with questions about this Settlement.
Para ver este aviso en espanol, visita www.ATTMETFSettlement.com/espanol
A Class Action Settlement Could Affect Your Rights If You:
• Subscribed to wireless telephone service from AT&T Mobility LLC ("AT&T Mobility") or its predecessors and paid or were charged a flat-rate early termination fee ("ETF") at any time after January 1, 1998; or
• Your contract included a flat-rate ETF provision at any time after January 1, 1998.
A proposed Settlement has been reached in a class action alleging that AT&T Mobility's flat-rate ETF (generally between $150 and $175) was unlawful. The Settlement resolves several other cases that challenge AT&T Mobility's flat-rate ETF. AT&T Mobility strongly denies any wrongdoing, but has agreed to settle to avoid the burden and cost of further litigation. The sole purpose of this notice is to inform you of the Settlement so that you may decide what to do.
If the Settlement is approved, a settlement fund of $16,000,000 in cash and $2,000,000 in non-cash benefits will be created. Class Members who submit Claim Forms may receive monetary or other benefits. You may also choose to exclude yourself from, or object to, the Settlement. The Court has appointed attorneys to represent the Class. You may hire your own attorney, but only at your own expense.
For a full description of the Settlement, related Court documents, and deadlines and forms, please visit www.ATTMETFSettlement.com.
• Claim Forms are due June 14, 2010, but the date may be extended.
• Requests to exclude yourself from the Settlement must be submitted to the Settlement Administrator and are due March 24, 2010.
• You or your lawyer has the right to appear before the Court and object to the Settlement. Any objections to the Settlement are due March 24, 2010, and any objections to attorneys' fees requested are due April 12, 2010.
• The Court will determine whether to approve the Settlement at a Fairness Hearing on April 14, 2010 at 10:00 a.m. in the United States District Court for the District of New Jersey.
• If you do not exclude yourself by March 24, 2010 and you are a member of the Class, you will be bound by the terms of the Settlement and give up your rights to sue in court or arbitration regarding issues in the case.
You can get a Claim Form at www.ATTMETFSettlement.com/claimform by calling 1-888-228-0885 or
by writing the AT&T Mobility ETF Settlement Claims Administrator, c/o Rust Consulting, Inc., P.O. Box 2266, Faribault, MN 55021-2386.
Questions may also be directed to Class Counsel by email at info@ATTMETFSettlement.com.
Please do not contact AT&T Mobility or the Court with questions about this Settlement.
Sharing is caring.. *on my way to New Jersey*
@ashleythehottiest Unless you are using a time machine to get there the trip won't do you any good.. But you COULD punch snookie!
@ashleythehottiest
I wish I could up rank an article. I loved the last part!
@jellotime91 PUNCH SNOOKIE: THE DOUCHE STRIKES BACK.
@thecool82 Snooks is my girl. The situation on the other hand..
Freakin' awesome.
I wish carriers would do away with subsidies and ETFs altogether. Too much to ask I guess...
@DirtyVegas
Got this from AT&T
Important Notice from the United States District Court for the District of New Jersey about a class action settlement regarding early termination fees which could affect your rights. A proposed class action settlement has been reached that could affect your rights if you: (a) subscribed to wireless telephone service from AT&T Mobility LLC or its predecessors and paid or were charged a flat rate early termination fee ("ETF") from January 1, 1998 through November 4, 2009 or (b) your contract included a flat-rate ETF provision at any time after January 1, 1998. Please click here (removed link) for an important notice regarding this settlement.
LET EM ALL PAY!!!! destroy the Death Star...
Have fun with your $10 credit. Stay classy NJ. :)
Awesome, I can't wait to get my 15 minute phone card!! Thank goodness for these class action law suits!!
does New Jersey really have anything to do with it? I got the email for the class action lawsuit in email and I live in CA. It also doesnt mention that I need to have had service in New Jersey in the PDF.
AT&T is the exclusive carrier of the iPhone - therefore, ANOTHER APPLE ARTICLE??? jesus engadget, you must be in their pocket. Sheesh. 218 articles last week (monday through friday), and 11 of them were about apple. How ridiculous of you, a tech blog, to devote a full 5 percent of your time to one of the most influential technology companies in the days leading up to a major product release. I sure do hate this site.
More articles about e-readers and netbooks, please!
@TomSawyer Your comment is so stupid.
@TomSawyer
You should put sarcasm tags in your post.
So $18 million (16+2) for 11 years worth of customers who were "wronged" by AT&T's ETF. How much did the lawyers get to "fight" for the customers? This doesn't really hurt AT&T at all (only $18 million?!), hurts the NJ customers (who, I believe, cannot sue for excessive ETF's again), and profits the lawyers who probably were seeking to settle from the moment they were presented with the case. *sigh*
@Center Hurts them psychologically, people will read this article and see how bad of a company at&t is. Therefore think twice next time they want to renew their contract or jump on the at&t wagon. Umm... that is all i could think of.
@SONYEDDIE
AT&T just needs to pump out more propaganda through YouTube with our friend Seth. That way, they can control the damage and continue to screw over their customers.
@Center
Yeah. Lawyers win. Everyone else loses.USA NUMBER ONE!
Something tells me flat-rate data is about to get a whole lot more unsustainable. Or, rather, for the current prices it will.
Didnt something like this happened with T-mobile 2 years ago?
E-mail from ATT
Important Notice from the United States District Court for the District of New Jersey about a class action settlement regarding early termination fees which could affect your rights. A proposed class action settlement has been reached that could affect your rights if you: (a) subscribed to wireless telephone service from AT&T Mobility LLC or its predecessors and paid or were charged a flat rate early termination fee ("ETF") from January 1, 1998 through November 4, 2009 or (b) your contract included a flat-rate ETF provision at any time after January 1, 1998. Please click here for an important notice regarding this settlement.
The link itself: http://www.mobilitywelcome.com/files/7584_ATTinsrt_R.pdf
Apparently, it covers everyone in the US and you did not have to pay the ETF, but if it was in your contract you are covered. Of course, the lawyers get 33% of the $16M and the rest of us divide the pittance remaining.
Still waiting on my share of the Verizon $21m that was settled a year and a half ago. But it's nationwide. I'll probably see about 12 cents. Oh well, I joined it just to get my share. I knew about the ETF and happily paid it to ditch the big V.
This settlement is for all AT&T subscribers. It shows up when you log into your account in the messages. The suit was just filed in the New Jersey US Court.
fuck yes@ "customers who pay full price for handsets should pay a lower monthly fee that doesn't include an equipment subsidy"
@SmilinGoat amen brotha! >>and people who are beyond their 2 year contract and don't want a new phone (ie all of our parents)
@SmilinGoat Dude, paying the same if you own your damn phone as those who have a subsidy is downright stealing.. Prepaid is your friend..
" now let's talk about how customers who pay full price for handsets should pay a lower monthly fee that doesn't include an equipment subsidy. That's a policy we could totally get behind."
Done. T-Mobile does this with their Even More Plus plans. Cheaper no contract plans because there's no handset subsidy. Seems like they get it.
@lray801
Exactly... How is it that Engadget doesn't know this?? That's the whole point of the "Even More Plus" plans at T-Mobile... welcome to November 2009.
@(Unverified)
They definitely covered that before.
Awesome!!! 18 mil? That's what $1.22 per person?
If you don't want to sign a freaking contract then buy the phone out right and stop bitching. You don't have the right to have a phone subsidized people. It's not rocket science here.
@rednano74
It's not? Damn, and I was here studying for some rocket science.
@el colchon miado
For some reason, "studying for some rocket science" is one of the funniest things I read all day. Am I going crazy?
@rednano74
The contract has nothing to do with it.
Why do I pay the same monthly rate if I pay $500 for a phone as someone who paid $99 for a subsidized phone?
Forget rocket science, you should learn some basic math.
@KidDynamic
Yes you are going crazy if you listen to me :(
@jon Because you are with the wrong carrier. I can't believe no one's brought this up sooner.
T-Mobile gives a plan subsidy if a phone subsidy isn't taken.
@jon I agree totally, I've fulfilled my 2 year contract yet I continue to pay the same monthly fee as someone who just received a subsidized phone with a new 2 year contract.
@lray801
One, T-mob's been doing that for less than 6 months. Before that they were the same as everyone else. And they still don't reduce the price of the contract after your subsidized phone is paid off.
Two, I'm switching to T-mob as soon as the HD2 is available.
@jon
Of course they don't change the price of your plan after you're out of your contract... That's when you switch yourself to the "Even More Plus" plan and lower your monthly bill yourself. Once you're out of contract, then you can get the cheaper "unsubsidized phone" plan.
As a current AT&T customer I got an e-mail about this.
I get to choose either a 200 minute prepaid long distance phone card OR
an acknowledgement of the new "prorated" ETF (which I already belong to) with
any future benifits AT&T deems fit to give me.
Bravo AT&T, bravo!
@harhar
so what we learned today is a 200 minute prepaid long distance phone card is actually worth about $0.01.
I'm pretty sure, pay as you go txt messaging will be .$25/message, all data plan will be $5 higher starting the next 3 months to cover attorney fee, the settlement $$$ and future profit.
good work guys.
@alext
I should stop reading the comments here. I'm just getting more pissed at our legal system. :/
" In 2008 we introduced a new, more flexible early termination fee policy, in which we pro-rate the ETF"
Uh, yea. Now it is $175 - $5 for each month on contract. So at the end of 23 months you still owe $80? and the day before 24mo still technically $75?
I have nothing against ETFs if I am signing a contract. I get something out of it and they should be able to expect me to fullfill my commitment. The reality is that you kind of signed a lease for $60/mo for 24 months. Feel lucky they just don't ask you pay out the lease, i.e. $60 x number of months left. That's what happens if you lease an apartment.
@sejohannsenearthlinknet
Actually, when you lease an apartment and break the lease, you generally cannot be required to pay out more than 2 months rent in many (maybe all?) U.S. states. That can still be a pretty severe penalty, but if you had to move away in week 2 of a 12 month lease, worst case should be 2 months and 2 weeks; a far cry from 11.5 months pro-rated. If a residential landlord tries to hold you to the entire lease, consult a lawyer.
So how do I get my money back?
I think the bigger problem is the anti-competition that takes place when equipment manufactures sign exclusive agreements with a service provider. This creates an monopoly that drives up the price of hardware AND also prevents a user from being able to shop around to get the best terms and price.
For example, AT&T has a monopoly on iPhone. If you want and iPhone you must use AT&T and agree to their price schedule (and price of the hardware because you cannot get it elsewhere) and terms. The user has zero choice if they want an iPhone.
I am more concerned about the apparent anti-trust violations that are taking place, than I am ETF. If the FCC or the Commerce Commission would prohibit exclusivity agreements between hardware manufactures and service providers the whole ETF issue would be less of an issue, because you could comparative shop and go with the best deal.
I ported my number to T-Mobile with 1 day left on my contract back in 05. I got a bill for $180.00 early termination fee. I called them and bitched and the reduced it to $118.00 which I still refused to pay. About a month ago just for fun I ordered a refurbished iPhone knowing that they would reject it. They did and sent me phone number to call. I called it and they said I had a old balance of 118.00. I asked they what it was for and they went away and about 30 minutes later they came back and told me that they had no idea and I was no longer liable for the $118 and they would get in touch with the credit companies and reverse whatever they had done. I got another call from a verification service 2 weeks later verifying that they had fixed the credit issues. Yesterday I got a bill with a zero balance from them. Today this came out.
@zoid99
That's actually a fantastic story... usually those stories end up going the other way.
Cool -- now let's talk about how customers who pay full price for handsets should pay a lower monthly fee that doesn't include an equipment subsidy. That's a policy we could totally get behind.
Couldnt have said this better myself!!!!! :D