AT&T and FTC settle 2014 throttling lawsuit for $60 million2019-11-05 16:44 by Daniela
Tags: AT&T, FTC
AT&T agreed to pay $60 million on Tuesday to settle a Federal Trade Commission case. The agreement dates back to a 2014 case in which the agency said the carrier misled customers by charging them for "unlimited" data plans while still throttling their download speeds.
The settlement requires AT&T to deposit that $60 million into a fund that will be used to provide "partial refunds" to customers who signed up for unlimited data plans before the year 2011 (when the company's throttling policy first went into effect). The company is also barred from marketing plans off of their suggested speed or amount of data without disclosing any restrictions those plans may have.
"AT&T promised unlimited data - without qualification - and failed to deliver on that promise," Andrew Smith, director of the FTC's Bureau of Consumer Protection, said in a press release Tuesday announcing the settlement. "While it seems obvious, it bears repeating that Internet providers must tell people about any restrictions on the speed or amount of data promised."
Here's what AT&T stated:
"None of his allegations were ever proved in court," AT&T said in a statement. "We were fully prepared to defend ourselves, but decided settling was in the best interests of consumers."
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