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Submission + - AT&T looking to collect an "Administrative Fee" (tomsguide.com) 1

Anarchduke writes: AT& is implementing a new "administrative fee" of 61 cents on customer buills starting in May of 2013. Its an administrative fee and not a rate increase so it doesn't constitute a breach of contract. And of course, this fee will help rack up 500 million dollars a year in additional revenue. It should be noted that AT&T only claims they need to do this because other carriers do. For example, Verizon charges 91 cents for their "administrative fee". I imagine the fee will only get larger in the future.
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AT&T looking to collect an "Administrative Fee"

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  • Its an administrative fee and not a rate increase so it doesn't constitute a breach of contract.

    Unless the current contract says AT&T can unilaterally increase your consideration so long as they simply call it an "administrative fee", then yes, it does constitute a breach of contract unless you explicitly or implicitly agree to it. And if the contract does allow it, then it's no contract, unless it sets a limit on the 'fee'.

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