FTC sues AT&T for throttling bandwidth of 'unlimited' data customers

[KeepItReal]

Source: ComputerWorld

AT&T has misled millions of its mobile customers by promising unlimited data plans, then charging them and reducing their data speeds after they reach a monthly cap, the U.S. Federal Trade Commission said in a complaint announced Tuesday.

Some AT&T mobile customers had their data speeds reduced by nearly 90 percent after reaching a monthly data cap, the FTC said.

The company failed to adequately disclose to customers on "unlimited" data plans that it would reduce speeds after they reach the monthly cap, the FTC said in a news release. AT&T reduced data speeds to the point that many common mobile phone applications, including Web browsing, GPS navigation and streaming video, became difficult or nearly impossible, the agency alleged.

"AT&T promised its customers 'unlimited' data, and in many instances, it has failed to deliver on that promise," FTC Chairwoman Edith Ramirez said in a statement. "The issue here is simple: 'Unlimited' means unlimited."


Read more: http://www.computerworld.com/article/2839540/ftc-sues-att-for-throttling-bandwidth-of-unlimited-data-customers.html

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This is *precisely* why I dropped AT&T.

I joined them Day 1 of the first iPhone being release and had an Unlimited Data plan that I paid $30/month for.

My iPhone was not jailbroken (hacked) and I only used apps from the App Store.

They started throttling me all of a sudden last year, using some arbitrary 3 Gig limit as a reason. They claimed it was based on my "high usage for my area". Which area did they mean? My home in The SF Bay Area (where I only was on weekends) or New Orleans (where my client was and where I was working)? Pure BS by AT&T.

I've got truly unlimited data on T-Mobile now for a cheaper monthly rate.

[C Moon]

1. And they keep pleading me to come back for internet service...

They've actually knocked on our door twice in the past few years to get me to signup again for their newly installed lines.
YEAH RIGHT!!
When my service went down while working from home, they transferred me to 5 different people, and I ended up with the first person I initially talked to. I cancelled the service (luckily only 1 month left), and found another carrier...and never looked back.

[Dont call me Shirley]

2. Well how else is att going to be able to pay to have their name put on the Dallas and Giants stadium

Poor poor att, being forced to steal from its customers

[Kali]

3. T-Mobile doesn't throttle down after 10 Gs?

I bought a usb modem from them and it is "unlimited" but they said it will slow down if I go over the limit. This was a couple years ago when they were the only one left offering unlimited anything. Their signal isn't that good where I am so I went back to Verizon.

[Travis_0004]

4. Throttling data is ok as long as theh are upfront about it.

[Kali]

5. oh, yes I sort of agree about that

I was just curious if they have changed the policy and now it really IS unlimited.

[KeepItReal]

9. I use a smartphone with unlimited data. No throttling.

I think wireless modems have a different set of rules.

[sulphurdunn]

6. Once upon a time

this sort of scam was called fraud, and people would go to jail for it.

[Chico Man]

7. Pretty sure every carrier throttles

Interesting lawsuit.

[ColesCountyDem]

8. They do, but AT&T was the most blatant about it. n/t

[KeepItReal]

10. T-Mobile has a truly unlimited data plan for wireless phones

I have it right now. No throttling.

[Recursion]

11. Throttling is legal. Advertising that you won't throttle, and then throttling, isn't (nt)

[Darb]

12. Why does the FTC have to sue them, why can't they just get Justice to arrest

some executives and charge them with fraud.