We wanted to let you know about an important case about to heard in the Supreme Court. The decision will affect us all.
 
It will decide whether consumers can pursue justice against corporations. Believe it or not, this essential American right may be taken away by the highest court in the land.
 
The backstory: Vincent and Liza Concepcion sued AT&T in 2006, alleging that the company defrauded millions of customers by advertising phones as “free,” then tacked on an undisclosed $30 charge for the phone. Multiply that $30 charge by millions of customers and it amounts to potentially hundreds of millions of dollars. The class action was filed on behalf of all consumers who were unfairly charged the $30.
 
AT&T tried to dismiss the case, saying that its phone contract bans class actions like this and instead forces its customers to use its hand-picked, company-paid arbitration firm. Class actions are when many consumers join together to pursue a common complaint against a company. It allows people to combine resources to fight a well-funded corporation and is a key weapon for consumers to fight deception, fraud and other abuses by companies.  
 
Judges ruled that the company was not allowed a "get out of jail free card," meaning that AT &T could not force customers to sign away their rights to form class action lawsuits. But AT&T didn't stop there. It has taken the case to the Supreme Court. The company wants the Court to overturn California law and the law of 19 other states which has always said consumers have the right to hold businesses accountable through class actions. At stake is whether consumers will continue to have the right to sue a company as a group when small dollar violations occur.

Consumer Action signed onto an amicus brief in the case, supporting the consumer right to pursue class action claims against companies. We have long been a champion for consumer rights and have a record of successfully challenging consumer mandatory arbitration requirements, as plaintiffs in 2003's Ting vs. AT&T and 1998's Badie vs. Bank of America.

 

The Supreme Court will hear AT&T v Concepcion next Tuesday, November 9. As always, we'll keep you updated and informed.