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Consumer Confidential: AT&T overbilling alleged; Krispy Kreme rakes in cash

May 23, 2011 |  9:53 am

Ipadpic Here's your mambo-number-five Monday roundup of consumer news from around the Web:

--Are you being overcharged for your iPhone or iPad? A new lawsuit alleges that AT&T is doing just that, overcharging customers for phantom data transactions. The firm of Thornton, Davis & Fein has filed suit in federal accusing AT&T of overcharging iPhone and iPad customers by as much as 100 kilobytes of data per 50-kilobytes charged. In a test, the firm said an iPhone left unused for 10 days logged 35 data transactions. AT&T says there's nothing fishy going on. The company says there are data transactions running in the background on most smart phones. Just because consumers might not be aware of them, the company says, doesn't mean they aren't needed. In many cases, those transactions may involve apps accessing online data. The class-action suit was filed on behalf of 20 million consumers who own AT&T iPhones and iPads.

--A sweet sign o' the times: Krispy Kreme Doughnuts has reported its biggest quarterly profit in more than seven years, sending its shares soaring. The doughnut chain posted $9.2 million in profit for the first three months of the year, which is a whole lot of sugar going down the gullets of customers. Krispy Kreme has had its work cut out for itself, trying to pitch its glazed confections amid an obesity epidemic and efforts to get people to eat healthier. The company has also faced rising commodity costs, especially for sugar. Krispy Kreme says it is working to offset those costs by reducing the use of some key ingredients and raising various prices. And it appears American consumers have no loss of appetite for the product.

-- David Lazarus

Photo: A lawsuit alleges that AT&T is overbilling for data transactions. Credit: Emmanuel Dunand / AFP/Getty Images