AT&T defeats class action in unlimited data throttling case

(credit: Chris Young)

Customers who sued AT&T over its practice of throttling unlimited data plans will not be able to pursue a class-action lawsuit against the company. AT&T argued that the customers could only have their complaints heard individually in arbitration, and Judge Edward Chen of US District Court in Northern California has sided with the cellular company.

The customers' contracts with AT&T required them to arbitrate disputes with AT&T on an individual basis. But customers argued that the arbitration cause would violate their First Amendment right to petition a court for a redress of grievances. While the arbitration clause allowed claims to be brought in small claims court, the plaintiffs argued that such a court would not be an adequate forum.

But Chen accepted AT&T's argument, noting that the Supreme Court previously upheld AT&T's arbitration provision in a 2011 decision. In the 2011 case, AT&T Mobility v. Concepcion, the Supreme Court found that the Federal Arbitration Act preempted a California state law that limited the power of companies to force customers into arbitration.

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