Two senators introduce bill to allow suits v. cell companies

October 14, 2011 by

Two senators introduced a bill on October 4, to prohibit wireless companies from having clauses in contracts that prohibit consumers from suing the companies because of hidden fees or other contract disputes.

Senators Richard Blumenthal of Connecticut and Al Franken of Minnesota introduced the measure, which would ban the common practice of putting clauses in wireless phone and data contracts that require consumers to use binding arbitration in the case of a dispute.

The proposed legislation is in response to a U.S. Supreme Court ruling in April that an AT&T unit could enforce a provision in its customer contracts requiring individual arbitration and preventing the pooling together of claims into a class action lawsuit or class-wide certification.

The plaintiffs in that suit, a California couple, filed their class action lawsuit in 2006, claiming they were improperly charged about $30 in sales taxes on cellphones that the AT&T Mobility wireless unit had advertised as free.

“This bill makes sure that Minnesotans have the ability to hold their mobile service providers accountable if they are cheated.  It also ensures that any dispute resolved through arbitration is truly voluntary, and that consumers are not being forced into it,” Senator Al Franken said in a statement.

Some consumers have complained of things like being charged for data even when applications are disabled or their mobile device is turned off.

Categories: Breaking News


Steve Larson
An experienced trial lawyer who handles both hourly and contingent fee cases, Steve has expertise in class actions, consumer cases, antitrust litigation, securities litigation, corporate disputes, intellectual property disputes, unfair competition claims, employment matters, and disputes involving family wealth. Steve regularly represents individuals and businesses in federal and state court and has obtained class-wide recovery in multiple class actions. A veteran practitioner, Steve's clients value his creative approach to resolving complex litigation matters.

Legal Disclaimer

The information contained in this blog does not constitute legal advice, and does not create an attorney-client relationship. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this blog.