Vodafone, EE, O2, Three hit with 3B overcharging lawsuit

"The cases involve contracts bundling handsets with services. The contention is that customers who continued using the service after the minimum term ended were charged the same monthly fee, and not a SIM-only fee for continued use of the network. Plaintiff Justin Gutmann - understood to be a former executive at Citizens Advice - said he was seeking damages of more than £3 billion ($4 billion) as the "class representative" on behalf of millions of subscribers he claims were overcharged."

"Citizens Advice has published a notice warning that phone providers may be overcharging loyal customers. "At the end of a two-year contract, you're free to move plans, or to switch providers. Or, if you're happy with your handset and plan, you can just stay and keep everything the same. But there's a catch. You're no longer paying for the handset - but your price stays the same," Citizens Advice stated."

"The CAT ruling granted an application made by all four mobile companies to strike out any claims relating to the period before October 1, 2015, due to limitation rules, but refused an application made by Vodafone, BT/EE, and Three to also strike out claims for the period before March 8, 2017. The tribunal approved Gutmann as class representative despite operators' arguments questioning his ability to fund the proceedings or fairly represent claimants."

Collective legal claims against Vodafone, BT/EE, O2, and Three allege customers were overcharged after handset-contract minimum terms ended. The Competition Appeal Tribunal allowed the cases to proceed while limiting damages claims for periods before October 1, 2015. The claims center on bundled handset-and-service contracts where customers remained on the same monthly price instead of shifting to a SIM-only rate. Plaintiff Justin Gutmann seeks over £3 billion allegedly on behalf of millions of subscribers. Citizens Advice warned that loyal customers may be overcharged. The tribunal approved Gutmann as class representative despite operators' objections about his funding and representativeness.

Read at Theregister