Chicago (IL) – A lawsuit against Apple and AT&T over the much discussed 3G issues should not come as a surprise in a sue-happy nation like this.  The two companies are hit with a lawsuit that accuses them of overselling buggy iPhone 3Gs, causing cell towers to reduce the network’s 3G performance due to excess power requirements of the handset. The filing accuses both companies of failing to inform users of these issues in their marketing materials and if class action status is granted, the lawsuit could force Apple and AT&T to compensate all California-based iPhone 3G users.

The "twice the speed, half the price" tagline chosen as a theme of iPhone 3G advertising campaign is backfiring at the Cupertino-based electronics maker. We don’t really want to say “told you so”, but we warned some time ago that the slogan walks on thin ice, separating smart and false advertising. As much as we complained about the "half the price" part of the slogan (which we are in fact a bit surprised about that no lawyer has attacked yet), Apple is in trouble over the "twice the speed" claim.

The origin of this suit can be found in the widely reported 3G reception issues, which included dropped connections, fall-back to EDGE in areas with excellent 3G coverage and reduced download speeds.

Jessica Smith from Birmingham, Alabama, filed a 10-page complaint, accusing Apple of falsely advertising the iPhone 3G speed. Smith alleges that the iPhone 3G maintains a 3G connection over less than 25% of the time, estimating that "tens of thousands" users are affected based on online reports. She is seeking damages and asking others to join her in a civil action class lawsuit. The effects of her lawsuit becoming much more prominent as other users are filing even more serious complaint against both Apple and AT&T.

William Gillis from San Diego filed an 18-page complaint that accuses the two companies of intentionally overselling the handset, although both Apple and AT&T were aware that AT&T's cellular network will not be able to sustain all buggy iPhone 3Gs on the network. The lawsuit alleges the combination of the flawed iPhone 3Gs and a sheer amount of iPhone 3G users is resulting in power drainage in AT&T's cell towers.

Diego does not provide any evidence for his claim beyond online reports and user complaints published in Internet forums. Both complaints request Apple and AT&T to pay punitive damages and restitution. Diego also wants class action status so that all affected iPhone 3G users who live in California can be compensated for their troubles.

Diego particularly criticized AT&T, whose representatives publicly said that iPhone 3G is "performing great" despite the fact that insider reports challenged the carrier's claim. He goes further to note that the product packaging and marketing materials fail to specify that the actual real-life performance may not be on par with the user's expectations. The complaint said that both companies should be required to disclose accurate information about the product: "This is especially true in the case of the speed and performance of an expensive device, which is an important feature in any electronics device purchase."

true that.

Sep 03, 2008 11:33     

may be I should start one in texas. I am paying for 3G and can only use EDGE reliable... 3G connection goes up and down a lot even in houston and inside building signal is so weak it got no service and will not switch to EDGE on its own. I am sick of going to the setting to turn on off 3G.
yo report abuse vote down vote up Votes: +7

Dumb-A lawsuits

Sep 03, 2008 11:55     

I simply hate the lawsuit-happy nature of this nation. People sue for and over everything. Stupid. I would like more regulations about idiotic lawsuits & fines for those that push them.
JT report abuse vote down vote up Votes: -5

Sue Happy A-Holes

Sep 03, 2008 13:03     

What a crock of S H I T ! ! !
ronjamin report abuse vote down vote up Votes: -7

Are you guys serious?

Sep 03, 2008 15:27     

This is one of the few times the legal system is being used right. You complain and complain about these huge companies demanding more and more money and giving less and less service, then call people 'sue happy a-holes' when they try to stand up and do something about it? And for the record, nobody gets much of anything from a class action lawsuit except for the lawyers, class action lawsuits are more to keep companies in line than to make money for the average consumer.

Jorge report abuse vote down vote up Votes: +10

people need to get over it. With the release of suc...

Sep 07, 2008 21:31     

people need to get over it. With the release of such revolutionary technology, problems are bound to occur. In comparison with other mobile devices the iPhone is still work the money. "send from MY iPhone."
ralph Brynard report abuse vote down vote up Votes: -1