AT&T Lawsuit: Wireless Carrier Sued Over Hidden Administrative Fee

A lawsuit has been filed against AT&T (T), claiming that its $1.99 administrative fee isn’t included as part of the company’s advertised rates for its wireless service plans. The suit is seeking class-action status for all customers located in California and was filed by Ian Vianu and Irina Bukchin, Ars Technica reported.

The $1.99 fee in questions has allegedly been added to AT&T customer bills since 2013 when it was reportedly $0.61 per month. The plaintiffs in the case claim that the fee isn’t advertised by the company and is not included in the “Additional Charges” description that is provided on AT&T’s website. However, the Additional Charges part of AT&T’s website does contain the phrase “certain expenses AT&T incurs.”

According to the lawsuit, AT&T is “hiding” the fee and is “misleadingly” suggesting that the “Administrative Fee is akin to a tax or another standard government pass-through fee, when in fact is simply a way for AT&T to advertise and promise lower rates than it actually charges.”

The plaintiffs argue that because the fee is listed under the “Surcharges & Fees” section of an AT&T bill, it is misleading consumers to believe it is being paid to the government and not AT&T. The suit also questions how the fee has increased from $0.61 to $1.99, claiming that these costs have actually been reduced over the years instead of increasing.

The lawsuit contends that AT&T is violating California’s Consumer Legal Remedies Act.

AT&T responded to the lawsuit by telling the news outlet that "The lawsuit is wrong. This is a standard fee, and we disclose it to our customers."

If the lawsuit moves forward as a class action suit, past and present AT&T customers in California stand to receive damages, restitution, and legal costs from the company, PC Magazine reported.

The lawsuit was filed on Thursday in US District Court for the Northern District of California.