AT&T’s Mexico unit loses class action lawsuit to consumer watchdog

FILE PHOTO: The AT&T logo is pictured during the Forbes Forum 2017 in Mexico City, Mexico, September 18, 2017. REUTERS/Edgard Garrido/File Photo

MEXICO CITY (Reuters) – Mexico’s consumer watchdog, Profeco, said on Friday it won a class-action lawsuit against the local unit of U.S. telecommunications giant AT&T Inc for undue charges and poor service.

Profeco said that in 2013 it sued telecommunications operator Nextel, which was acquired by AT&T in 2015, for undue charges, changing rates without informing customers and continuing to charge clients for services that had been canceled.

Nextel offered 4G technology on its website though “it was proven in court the technology provided was inferior to what was advertised, underscoring the use of abusive and false advertising to prompt consumers into mistakenly acquiring their services,” Profeco said in a statement.

Profeco said AT&T, Mexico’s third-largest mobile service provider, “must pay damages to its affected consumers, plus 20% compensation and an additional 9% annual legal interest, for the various undue charges.”

It did not estimate how much that could mean AT&T will have to pay.

The sentence is final after Mexico’s Supreme Court rejected a prior appeal filed by the company.

“These trials began well before AT&T entered the market, as part of a class action suit presented against all wireless companies in Mexico, including Nextel, which we acquired in 2015,” AT&T said in a statement. “We continue working to serve our customers in better ways.”

Writing by Anthony Esposito; Editing by Leslie Adler

Source link

more recommended stories

  • Huawei shipments could fall by up to a quarter this year: analysts

    HONG KONG/SHANGHAI (Reuters) – China’s Huawei,.

  • First American says product defect could have caused customer data exposure

    (Reuters) – U.S. real estate title.

  • Mexico tax plan for riding hailing firms may soon be mandatory: Cabify

    MEXICO CITY (Reuters) – A tax.

  • Amazon facial recognition ban won just 2% of shareholder vote

    (Reuters) – Amazon.com Inc shareholders overwhelmingly.

  • South Korea orders further arrests at Samsung Electronics over accounting scandal

    FILE PHOTO: The logo of Samsung.

  • OECD members, including U.S., back guiding principles to make AI safer

    PARIS (Reuters) – The evolution of.

  • NASA chooses technology firm Maxar for lunar platform project

    FILE PHOTO: Tourists take pictures of.

  • China calls out U.S. ‘wrong actions’ as Huawei ban rattles supply chains

    BEIJING (Reuters) – China said the.

  • U.S. lawmakers want to help rural telecoms replace Huawei, ZTE equipment

    WASHINGTON (Reuters) – A bipartisan group.

  • Allianz leads C$100 million funding round for fintech Wealthsimple

    LONDON (Reuters) – German insurer and.

  • U.S. could blacklist Chinese surveillance tech firm Hikvision: NYT

    (Reuters) – The U.S. administration is.

  • U.S. eases curbs on Huawei; founder says clampdown underestimates Chinese firm

    SHANGHAI/NEW YORK (Reuters) – The United.

  • Self-driving trucks begin mail delivery test for U.S. Postal Service

    (Reuters) – The U.S. Postal Service.

  • Retailer Amazon nears victory in rainforest battle over domain name

    FILE PHOTO: Staff chat at the.

  • Infineon suspends shipments to Huawei: Nikkei

    FILE PHOTO: A close-up of the.

  • U.S. intellectual property complaints a ‘political tool’: China state media

    SHANGHAI (Reuters) – Chinese state media.

  • Exclusive: Google suspends some business with Huawei after Trump blacklist – source

    FILE PHOTO: Visitors walk past Huawei’s.

  • Huawei founder says growth 'may slow, but only slightly' after U.S. restrictions

    Huawei Technologies’ founder and chief executive.

  • Exclusive: U.S. may scale back Huawei trade restrictions to help existing customers

    (Reuters) – The U.S. Commerce Department.

  • German finance minister expects OECD deal on digital tax in 2020

    Finance Minister Olaf Scholz addresses a.

  • Lyft is sued by investors over IPO

    FILE PHOTO: The Lyft logo is.

  • GMC trucks to deploy adaptive cruise control system

    The GMC logo is seen on.

  • Baidu swings to net loss for first time since listing, shares fall

    (Reuters) – Chinese search engine operator.

  • Huawei ban clouds U.S.-China trade talks, tech sector

    WASHINGTON/BEIJING (Reuters) – A U.S. bid.

  • Tesla to update battery software following car fires

    (Reuters) – Tesla Inc will update.

  • SpaceX to launch first satellites for Musk’s Starlink internet service

    CAPE CANAVERAL, Fla. (Reuters) – Elon.

  • FCC ready to let phone companies use tools to block robocalls

    WASHINGTON (Reuters) – U.S. Federal Communications.

  • Facebook restricts Live feature, citing New Zealand shooting

    SAN FRANCISCO (Reuters) – Facebook Inc.

  • FCC to take ‘fresh look’ at opening key 5.9 GHz spectrum band

    WASHINGTON (Reuters) – The U.S. Federal.

  • Huawei is not controlled by China, executive says

    FILE PHOTO: The Huawei logo is.

  • Ex-Autonomy CFO sentenced in U.S. to 5 years prison over Hewlett-Packard fraud

    (Reuters) – The former chief financial.

  • Exclusive: Amazon rolls out machines that pack orders and replace jobs

    SAN FRANCISCO (Reuters) – Amazon.com Inc.