Buyer beware! AT&T's case against consumers headed to the Supreme Court

If you don’t know anything about AT&T Mobility v. Concepcion, you should. The case, which will be heard by the U.S. Supreme Court on Nov. 9, has frightening implications for consumers.

Basically, the court will decide whether companies can deny consumers and employees the right to band together through class actions to fight fraud, discrimination and other illegal practices. AT&T argues that the courts must enforce the fine print of its contracts that ban class actions. Public Citizen attorney Deepak Gupta will argue before the court on behalf of consumers, claiming that the contracts are unconscionable and unenforceable.

When a large number of consumers have claims for small amounts, it is not feasible to pursue the claims without a class action. Concepcion is exactly that kind of case. The Concepcions allege that AT&T illegally charged them $30.11. Multiplied by the number of AT&T’s California customers alone, the allegations implicate ill-gotten gains in the millions of dollars. But if consumers can litigate the claims only one by one, no one will do so, and AT&T will keep the proceeds of its illegal activity.

In the video above, Public Citizen President Robert Weissman and Gupta give a telephone press briefing on the case.

If AT&T wins, not only will it be difficult for AT&T’s customers to hold that company accountable for its actions, but also for people with civil rights, labor, consumer and other kinds of claims that stem from corporate wrongdoing. Dozens of organizations, including leading civil rights and consumer groups, have filed briefs asking the court not to allow corporations to ban class actions. The briefs and other information about the case are available at the Consumer Law & Policy Blog.