An anonymous reader quotes a report from Motherboard: AT&T is arguing that its customers can’t sue the company for selling location data to bounty hunters, according to recently filed court records. AT&T says the customers signed contracts that force them into arbitration, meaning consumers have to settle complaints privately with the company rather than in court. The filing is in response to a lawsuit filed by the Electronic Frontier Foundation (EFF). The issue circles around mandatory arbitration; that is, forcing consumers to settle complaints privately with the company rather than in court.

“Each time they entered into a new Wireless Customer Agreement with AT&T, they [the plaintiffs] not only agreed to AT&T’s Privacy Policy but also agreed to resolve their disputes with AT&T — including the claims asserted in this action — in arbitration on an individual basis,” AT&T’s filing from last week reads. When the plaintiffs, who are AT&T customers, accepted AT&T’s terms and conditions when, say, purchasing a new phone, they also agreed specifically to the arbitration clause, AT&T argues. The Arbitration Agreement on AT&T’s website reads, “AT&T and you agree to arbitrate all disputes and claims between us. This agreement to arbitrate is intended to be broadly interpreted.” The class-action lawsuit comes after multiple investigations found that T-Mobile, Sprint, and AT&T were selling access to their customers’ location data to bounty hunters and others not authorized to possess it. All of the telecom giants have since stopped selling the data, but that hasn’t stopped lawyers from filing class-action lawsuits.

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