AT&T sued over hidden fee that raises mobile prices above advertised rate

Enlarge / An AT&T retail store in Chicago in 2018. (credit: Getty Images | jetcityimage)
AT&T is facing a class-action complaint over its practice of charging a $1.99-per-month 'Administrative Fee' that isn't disclosed in its advertised rates.
As the complaint notes, 'AT&T prominently advertises particular flat monthly rates for its post-paid wireless service plans.' But after customers sign up, the telco 'covertly increases the actual price' by tacking on the 'bogus so-called 'Administrative Fee,'' according to the lawsuit filed Thursday in US District Court for the Northern District of California.
AT&T 'hides' the fee in an easy-to-miss spot in customer bills, the complaint says, and it 'misleadingly suggests that the Administrative Fee is akin to a tax or another standard government pass-through fee, when in fact it is simply a way for AT&T to advertise and promise lower rates than it actually charges.'
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