On September 8, 2014 GTL lost its bid to dismiss a putative class action over its rates in Newark federal court, as reported in the article “Judge Won’t Toss Class Action Over Cost of Prisoners’ Calls” in the New Jersey Law Journal. The case has been stayed while the plaintiffs pursue an administrative remedy with the Federal Communications Commission.
Global Tel-Link, GTL, one of the top two prison phone providers in the country, buys phone time for three-tenths of a cent per minute but resells it for 30 cents per minute to people who receive calls from inmates. We’ve seen the same case, with Securus, and we wrote about it a few days ago in our inmate communication section.
GTL is the exclusive provider of phone service for state prison inmates in New Jersey and the state’s 40 percent cut of those phone fees comes to more than $4 million per year. Two affiliates of that company, Inmate Telephone Service and DSI-ITI, which provide similar services to county jail inmates in New Jersey, are also named as defendants.
The suit, James v. Global Tel-Link, was filed in August 213, by a former state prison inmate and six relatives of inmates. The suit says family, friends and lawyers who wish to receive calls from inmates are required to make a minimum deposit of $25, of which 20 percent goes to an administrative fee. Users of the service are not provided with a written contract and are not advised of the terms and conditions that apply to their accounts. When making a call, users hear how much money is left in their accounts but cannot obtain an itemized statement of charges.
The inmate who filled the suit, Mark Skladny, says that when he was moved from one penal institution to another during his incarceration, his parents had to open new accounts with GTL each time he moved, incurring fees to close one account and open another.
The suit brings claims under the New Jersey Consumer Fraud Act and the Federal Communications Act, as well as the takings clause of the Fifth Amendment. In November 2013, the FCC issued regulations capping rates for inmate calling services at 21 cents per minute.
GTL and other prison phone service companies challenged the FCC regulations and that case is pending in the U.S. Court of Appeals for the D.C. Circuit. In light of that case, Global Tel-Link moved for dismissal of the New Jersey class action suit, arguing that the FCC has primary jurisdiction to decide if the company’s terms are reasonable. The plaintiffs, for their part, said there was no need to refer the case to the FCC because that agency had already resolved the issue of whether the company’s rates are unreasonable.
In a Sept. 8 ruling, U.S. District Judge William Martini of the District of New Jersey agreed that the FCC has primary jurisdiction over certain issues in the case, but he entered a stay rather than dismissing it. Notwithstanding the stay, however, Martini also issued an order the same day allowing the plaintiffs to move for specific, limited discovery.
Martini noted that the Federal Communications Act allows plaintiffs to file a suit or make a complaint to the FCC if they feel a communications service is charging fees that are unjust or unreasonable. While the plaintiffs were within their authority when they brought their suit in court, Martini said, the issue of whether the company’s fees and policies are unjust and unreasonable is “better left for the FCC.” Pursuing an administrative complaint with the FCC won’t cause the plaintiffs to lose their rights to pursue damages in court, Martini said.
Are you fed up with GTL and similar prison phone companies, ripping you off?
The FCC invites you to take action and we invite you to send us your experiences, thoughts, comments, and join our discussion!
[…] though very soon you will be able to talk to your loved ones without thinking about how much it is going to cost you, long-distance calls within the state could […]