Key Findings

Mandatory Arbitration Severe

AT&T requires binding arbitration and class action waiver. You must opt out within 30 days by certified mail to a specific address.

"You agree that any dispute arising from your relationship with AT&T will be resolved through binding arbitration... You agree to waive your right to participate in class actions."
Price Increases Without Consent Severe

AT&T reserves the right to raise prices at any time, even mid-contract. Continued use is considered acceptance of new pricing.

"We may change prices and fees at any time. If you continue to use services after the change, you accept the new terms."
Device Installment Trap Severe

Device installment plans run for 36 months. Canceling service requires paying the full remaining balance immediately, even if you can't use the device elsewhere.

"If you cancel service before your installment plan is complete, the remaining balance becomes due immediately."
60-Day Device Lock Moderate

AT&T locks devices for 60 days minimum, even if you pay full price. Active military get exceptions but must request unlocking manually.

"Devices are locked to AT&T for 60 days from activation... Military personnel may request early unlock with documentation."
Heavy Deprioritization Moderate

AT&T deprioritizes unlimited plans after 22GB or less, among the lowest thresholds in the industry. Speeds can drop dramatically during congestion.

"After 22GB of data usage, you may temporarily experience reduced speeds in times of network congestion."
Early Termination Fees Moderate

While AT&T markets "no contracts," device installment plans effectively create long-term commitments with steep early exit costs.

"There are no early termination fees for service, but device balances must be paid in full if you cancel."
Administrative Fees Mild

AT&T charges a $35 activation fee and various administrative fees that can be increased at any time without notice.

"Activation and upgrade fees may apply. Administrative fees are subject to change."

What This Means For You

AT&T's terms create multiple long-term traps that are difficult to escape:

  • Device installment = 36-month commitment even without a "contract"
  • Prices can increase at any time with no recourse
  • Arbitration opt-out window is only 30 days
  • Lower deprioritization thresholds than competitors

Consider purchasing devices separately to maintain flexibility, and carefully review promotional fine print.

⚠ Installment Plan Warning

AT&T's 36-month device installment plans effectively lock you in longer than traditional 2-year contracts did. If you want to switch carriers, you'll owe the full remaining balance immediately, which could be $1,000+ for newer phones. Buy devices outright if you value flexibility.