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Class action breach of contract suit filed against Walmart

On Behalf of | Aug 21, 2013 | Contract Disputes |

The nation’s largest retail chain is under fire after a class-action suit alleged they and a mobile phone provider falsely advertised a phone plan. The law suit states that both Walmart and TracFone committed a breach of contract that was in violation of several state trade practice statutes in Florida and elsewhere. The claim has been filed in a federal court.

The joint plaintiffs allege that TracFone, which provides mobile wireless service, falsely advertised their “Straight Talk” package. The package claims to offer “unlimited” data service, but the plaintiffs argue that service was slowed and ultimately cut off when customers tried to make use of the so-called limitless bandwidth. They suggest the companies intentionally slowed or stopped service and then blamed customers for “misuse”.

The suit alleges breach of contract as well as covenant of fair dealing and good faith. It also charges the companies with violations of several state statutes having to do with unfair trade practices. It is unclear how much the suit is seeking in restitution, but listed among the damages are exemplary damages, interest and attorney costs. The suit is currently under review in a federal court.

It is not always a customer that defaults on a contract. When an individual enters into a signed agreement with an entity like a corporation, Florida and federal law require that both parties hold up their respective ends of the bargain, and a failure to do so constitutes a breach of contract. It is possible for an individual to take a corporation to task for such an infraction, and anyone who feels a company has misrepresented itself should seek assistance in determining their next legal course of action.

Source: fiercewireless.com, “TracFone’s Straight Talk, Walmart sued over unlimited data claim,” Phil Goldstein, Aug. 8, 2013