AT&T and FTC settle lawsuit over data throttling2019-08-26 15:55 by Daniela
Tags: AT&T, FTC
The legal battle between the Federal Trade Commission (FTC) and AT&T, has come to an end after the two parties have reached to a settlement deal over the company's "misleading" internet throttling policies. The value of the settlement was not disclosed.
The FTC sued AT&T in 2014, alleging the wireless provider misled customers who signed up for an unlimited-data plan only to see their connection slowed in an industry process called "throttling." The agency said then that AT&T had throttled at least 3.5 million customers, and that the practice resulted in slowing network speeds 80 to 90%.
In 2015, the FCC announced intent to fine the carrier $100 million over the throttling practice. At the time, AT&T issued a statement denying any wrongdoing and vowed to fight the FCC's assertions.
"The FCC has specifically identified this practice as a legitimate and reasonable way to manage network resources for the benefit of all customers, and has known for years that all of the major carriers use it," the company said. "We have been fully transparent with our customers, providing notice in multiple ways and going well beyond the FCC's disclosure requirements."
Now, with an agreement in hand, the FTC and AT&T have asked the court for a 90-day stay as the proposal is presented to FTC commissioners for review. A subsequent vote on the agreement is expected to arrive by Nov. 21.
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