Pixel Envy

Written by Nick Heer.

FTC Fines AT&T $60 Million for Calling Its Limited Data Plans ‘Unlimited’

Lesley Fair of the U.S. Federal Trade Commission:

Sometimes FTC cases affirm important legal principles in the courtroom. In other cases, we’re able to get money back for consumers injured by a company’s illegal conduct. The FTC’s action against AT&T for allegedly deceptive and unfair practices related to AT&T’s promises of “unlimited data” resulted in a key ruling last year about the FTC’s jurisdiction and will return $60 million to affected consumers.

In 2014 the FTC sued AT&T Mobility, LLC, for failing to adequately disclose to customers on unlimited data plans that if they used a certain amount of data in a billing cycle, AT&T would slow down – or throttle – their data speeds to the point that many everyday smartphone functions (for example, web browsing and video streaming) became nearly impossible. According to the complaint, despite its unequivocal promises of unlimited data, in 2011 AT&T began throttling data speeds for its “unlimited” customers who used a little as 2 gigabytes in a billing period.

Good on the FTC for affirming the basic principle that words do, in fact, have meaning.