Sunday, November 2, 2014

FTC Sues AT&T for Shaping Unlimited Subscribers

Do you remember this move by AT&T, back in 2011 -  "AT&T to Throttle Top 5% of Unlimited Subscribers" - here?

Here comes the consumer response.

The Federal Trade Commission (FTC) announced that  it has "..filed a federal court complaint against AT&T Mobility, LLC, charging that the company has misled millions of its smartphone customers by charging them for “unlimited” data plans while reducing their data speeds, in some cases by nearly 90 percent.

The FTC’s complaint alleges that the company failed to adequately disclose to its customers on unlimited data plans that, if they reach a certain amount of data use in a given billing cycle, AT&T reduces – or “throttles” – their data speeds to the point that many common mobile phone applications – like web browsing, GPS navigation and watching streaming video – become difficult or nearly impossible to use.

..The FTC alleges that AT&T, despite its unequivocal promises of unlimited data, began throttling data speeds in 2011 for its unlimited data plan customers after they used as little as 2 gigabytes of data in a billing period. According to the complaint, the throttling program has been severe, often resulting in speed reductions of 80 to 90 percent for affected users. Thus far, according to the FTC, AT&T has throttled at least 3.5 million unique customers a total of more than 25 million times".

Related post - "AT&T: 1M Subscribers Switched from Unlimited to UBB in Q1" - here.

See "FTC Says AT&T Has Misled Millions of Consumers with ‘Unlimited’ Data Promises" - here.

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