Pelephone Rules Out Cyberattack- Class Action Filed

In what must be one of the fastest class-action filings ever, on Monday a law firm in Israel filed a NIS 450 million class-action against cellular phone company Pelephone for a four hour service outage that ended at 11 PM Sunday night. The JPost reported that the suit was filed on behalf of one Tom Lifshitz requesting "NIS 100 in damages and NIS 50 in emotional damages, citing the fact that mobile communications are an integral part of daily life and their absence left him unable to make personal or work-related calls, leaving him feeling 'helpless.'"

My wife was trying to call some people who use Pelephone yesterday and noticed that she could not get through. It was frustrating for her and it must have been even more frustrating for Israelis who have Pelephone as a provider, but a class action suit. Really? Emotional distress because your phone didn't work for four hours? Do you think this is the United States? If a car hit a power line and knocked out power to a whole city would that be grounds for a class action? I doubt it. I understand that people rely on their cellphones, sometimes to the exclusion of landlines but it doesn't seem like this is something that you can really sue for. You have to expect that even in our advanced technological age their will be some episodes of downtime every once in a while due to unforeseen circumstances. Besides, Pelephone is offering to compensate people with free minutes or data. That should probably be sufficient, instead of NIS 150 for each affected customer.

Oh, and totally coincidentally, I think we are switching to Pelephone tomorrow because we got a good deal for international calls and an American phone number on our cell phones and home phone. The recent outage gave me some pause, but not enough.

2 Class Actions Against PelePhone Certified by District Court

The Tel Aviv District Court recently approved a class action lawsuit filed against cellular phone provider Pelephone for charging customers a fee of 85 NIS in order to unlock their phones for use with SIM cards from other providers. The complainant claimed that such fees were against the Communications Law and violated the terms of PelePhone operating license.

PelePhone argued that it did nothing wrong.

Another class action against PelePhone was also certified around the same time. This one had to do with PelePhone option for customers to pay for music to be played to callers to their numbers in place of a standard ring. Customers paid 6.93 NIS for the service. Before the music was played to callers, they heard a 5.6 second message saying, "Do you like this song? If so, press * two times and it will be sent to your cellphone, for a fee." The lawsuit claimed that PelePhone did not have the customers' permission to solicit these purchases on time that was ostensibly paid for by the customers for the transmission of music.The lawsuit claimed the PelePhone breached its agreement and was unjustly enriched on the backs of its customers.

PelePhone claimed that it provided discounted songs to customers and because of that benefit, the class action did not accurately represent all of its customers and was against their interests. Further they claimed that most of their customers knew about the messages and so implicitly agreed and furthermore, it was easy to cancel the service and the messages by speaking with a PelePhone representative.

The Court rejected PelePhone's claims saying that it was not clear that customers knew about the messages and that they could cancel the messages. The Court also rejected the argument that the service benefited customers because it was still a source of revenue for PelePhone and appears to be a breach of the contract. PelePhone used the paid-for time of its customers without their permission.

Both of those decisions only permit the class action to proceed; there will be further decisions about the substantive issues at a later date unless the parties reach a settlement.