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Vacation ruined by a surprise, $4,800 iPhone bill
Kevin Spiess - Monday, September 10th, 2007 | 11:26AM (PT)


Hey, $4,800 is just the price of convenience, some would claim

Jay Levy went on a Mediterranean cruise. He brought his iPhone along with him, and his family. Presumably, he drank pina coladas, tanned himself in the sun, gorged from buffets, and enjoyed the other amenities a cruise can offer. What he didn't count on was that taking his iPhone along with him would cost him almost five thousand dollars in service charges.

Needless to say, Jay Levy is one unhappy consumer.

He was been calling (probably not on his iPhone) the offices of AT&T Wireless, the service provider for iPhones, in order to get his bill nullified. He feels that $4,800 worth of service charges is bit too much to pay.

How did Jay Levy incur such high charges? Well, that's the funny thing: it wasn't from phone calls. What happened was, in the name of convenience, the iPhone automatically downloads email messages -- even when it is off. So, just by having his iPhone with him, the phone was racking up international data-transfer fees, on the high-seas and Mediterranean islands, and a cost of somewhere between $5 and $20 dollars for a megabyte.

Apple's defense is that the Jay Levy should have foreseen the many thousands of dollars worth of charges that a traveling iPhone racks up. After all, Apple says, they adequately warn customers about the possible charges: after all, somewhere in the 6,707 word service agreement that people have to sign is this line: “Substantial charges may be incurred if phone is taken out of the U.S. even if no services are intentionally used.”

Jay Levy doesn't agree -- a lawsuit may be in the works. His view is that his “unlimited data (Email/Web) service plan should cover the roaming costs, and that the potential (and arguably excessive) service fees were not sufficiently communicated to him, by Apple or AT&T.

Hopefully, some of hundred dollar emails downloaded automatically by his iPhone were at least funny jokes, to better prepare him for nasty shock of his 54 page, $4,800 cellphone bill.


Vacation ruined by a surprise, $4,800 iPhone bill Image 1 Vacation ruined by a surprise, $4,800 iPhone bill Image 2
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Comments:

  • 0 thumbs!
    kspiess | Sep 10, 07 | quote
    The way the apple spokesperson said that Jay Levy should have been adequately warned of the possible service charges because of the one line in the 6,707 word service document really reminded me of a part of that very funny book, Hitchhikers Guide to the Galaxy, where the Vogons are about to destroy the Earth to make room for the hyperspace pathway [here's a quote from the novel]:

    'You hadn't exactly gone out of your way to call attention to the building plans had you? I mean like actually telling anyone or anything.' [Arthur Dent]

    'But the plans were on display.' [Vogon / AT&T ]

    'On display? I eventually had to go down to the cellar to find them.'

    'That's the display department.'

    'With a torch.'

    'Ah, well the lights had probably gone.'

    'So had the stairs.'

    'But look you found the notice didn't you?'

    'Yes,' said Arthur, `yes I did. It was on display in the bottom of a locked filing cabinet stuck in a disused lavatory with a sign on the door saying "Beware of The Leopard".'"
  • 0 thumbs!
    Wolfwood | Sep 10, 07 | quote
    Great quote! It's too bad that often times the stuff in the fine print isn't always common sense to the consumer. And there is always the issue with how a consumer interprets things.
  • 0 thumbs!
    Wolfwood | Sep 10, 07 | quote
    Hmmm, on second thought it would really depend on whether or not the fellow actually turned his iPhone off, as well as any automatic email updates. Maybe he should read the manual next time.
  • 0 thumbs!
    kspiess | Sep 10, 07 | quote
    His iPhone was off. I'm not sure as to whether or not you can turn the automatic email updates off or not.
  • 0 thumbs!
    MicahWrites | Sep 10, 07 | quote
    The debate over 'network neutrality' comes to mind. If we had network neutrality then there would be more competition as service providers could lower prices to woo more customers. But, with network neutrality there comes the ill fate of service providers raising prices to make more money.

    Yeah, I feel sorry for Levy and his 5 grand worth of unexpected bills. But a neutral net could have either raised or lowered his bill dramatically.

    Seems there's something to be said for regulation after all.
  • 0 thumbs!
    tekmosis | Sep 10, 07 | quote
    That has to be a violation of some sort of rights. This just seems so so wrong. Of course, it's his fault for not reading the EULA. But who even reads the whole 6,707 word service document?
  • 0 thumbs!
    MicahWrites | Sep 10, 07 | quote
    Doesn't the MS EULA come with the clause that your first born child officially becomes the property of Microsoft?

    If I had millions I'd start an honest cell phone company that wouldn't gouge customers for using the service they pay too much for elsewhere.

    How on Earth can 1MB of data zipping through the air cost $5-20 bucks?
  • 0 thumbs!
    Ivan | Sep 10, 07 | quote
    it's like many other smart devices with "off" buttons - they just switch into low power modes. The best way on any multifunction phone device is to go to the settings menu and put the device in flight mode. it shuts off all transmit/receive functions
  • 0 thumbs!
    MSA | Sep 11, 07 | quote
    Let me tell you why I will now be returning my iPhone this afternoon. I was just told by Apple (after calling to ask why my email was being downloaded every 15 minutes despite the fact that the phone was set to "manual") that if you are using a Yahoo account messages are automatically downloaded to your phone even if you have set it to manual. I then asked what would happen therefore if you were overseas...guess what?...if you have a Yahoo account on the phone you will have messages automatically downloaded ever 15 minutes whether you want to get them or not and be racking up the exorbitant overseas data transfer fees now being reported. No problem I thought...I'll just delete the Yahoo account and keep the other POP server account on the phone as that one can be set to retrieve messages only when you choose to. Well apparently that isn't going to work either, you see, according to both Apple and ATT, when the phone is turned on you are automatically connected to an available Edge network and so if you are overseas you are racking up roaming charges (up to $22 per hour I'm told) WHETHER YOU USE THE PHONE OR NOT! I was told I could put it in airplane mode to avoid overseas roaming charges (as also mentioned by Ivan above) but then I could not be contacted in an emergency...what's the use of having a cell phone with you? Message to take from this....you CANNOT take this phone overseas unless you're willing to pay some pretty hefty charges. ATT confirmed there is no way to cut off Edge connectivity overseas without also cutting off the ability to receive calls. Yes...I know there are ways to unlock the iphone now but it's too early to know how permanent these. This experience has definite been a case of "buyer beware" Bye Bye iPhone!
  • 0 thumbs!
    kspiess | Sep 11, 07 | quote
    ^^ Ya, it's incredible how blinding the lure of short-term profits can be to a company's vision of customer appreciation.

    Personally, I'm waiting for the OpenMoko phone...
  • 0 thumbs!
    MicahWrites | Sep 11, 07 | quote
    Someone should hack that ugly feature out of the iPhone. They've hacked so much already.

    And I would suspect that AT&T took a loss when bidding for the exclusive rights to the iPhone contact with Apple. They're trying to recover their losses now.
  • 0 thumbs!
    krisstarr69 | Sep 11, 07 | quote
    Well

    I for one am not surprised that Apple & At&t are sticking to their customers again.

    It is ridiculous that the only way you can not get billed to death is to turn it off so that it does not work.

    I have watched Apple do similar dumb ass moves in the past. I wonder do they still say that you do not need to defrag their hard drives and you have to buy a 3rd party utility to do this commonplace maintaince. The last Mac OS I saw that lacked this was OS X Panther.

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