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Consumer Law Keyed to Pridgen, 5th Ed.
Ting v. AT&T
Citation:
319 F.3d 1126 (2003)Facts
In 2000, following the FCC’s mandatory detariffing order, AT&T drafted and mailed a Consumer Services Agreement to its approximately 60 million residential long-distance customers. AT&T conducted market research indicating most customers would not read the agreement, which was sent either as a bill stuffer or in a separate envelope marked with generic language. The CSA contained Legal Remedies Provisions limiting AT&T’s liability, requiring binding arbitration, prohibiting class actions, imposing confidentiality on arbitration proceedings, and establishing a two-year limitations period. The agreement was offered on a take-it-or-leave-it basis with no opportunity for negotiation. Customers were deemed to accept the terms by continuing to use AT&T’s service or could reject them only by canceling service entirely. Plaintiff Ting received and read the mailing in July 2001 and subsequently filed suit challenging the provisions as unconscionable and violative of California’s consumer protection laws.
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