AT&T settles suit over third-party ringtone downloads

AT&T has agreed to settle a class action suit issued against it in Georgia, for allowing third parties to charge customers on unclear or wholly undisclosed terms for downloads.

The settlement received preliminary approval in the Superior Court of Fulton County, Georgia on Friday. The final hearing for the settlement will not occur until December 8th, giving customers approximately six months to file their claims.

The suit alleged that AT&T, in collusion with third-party providers of ringtones, wallpaper, games, jokes and news feeds charged customers either secretly or without adequate explanation. Downloads of such content would appear on subsequent telephone bills, apparently with the content provider and AT&T each taking a cut of the receipts.

Though AT&T admitted no wrongdoing, this is believed to be the first national class action settlement over third-party content. Subscribers eligible for recompense can claim up to three instances of fraudulent charges, and are entitled to a refund of either one-time or subscription charges.

Additionally, AT&T will begin using a notification system whenever a customer makes a third party transaction, making them confirm that it is a valid and acceptable exchange.

This morning, plaintiffs' lead attorney Jay Edelson issued an unusually conciliatory remark: "Most defendants who are sued tell us that their primary goal is to protect their customers. By agreeing to provide this type of unprecedented relief, AT&T proves that it stands behind its words. This is both a great result for the class and should put a lot of pressure on other carriers to demonstrate that they, too, are serious about their customers' welfare."

Similar suits have been filed by the same firm against Verizon, Sprint Nextel, and T-Mobile, and a total of 16 class action suits have been taken against AT&T in various state and federal courts in the US including California, Illinois, Minnesota, and New York.

Details of the settlement, including instructions for individuals wishing to declare themselves eligible for possible refunds, can be found at ThirdPartyContentRefund.com.