March 28, 2024
FTC Sues AT&T for Deceptive and Unfair Throttling of Users on 'Unlimited' Plans

FTC Sues AT&T for Deceptive and Unfair Throttling of Users on 'Unlimited' Plans

Posted October 28, 2014 at 5:33pm by iClarified
The Federal Trade Commission has filed a federal court complaint against AT&T, 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.

“AT&T promised its customers ‘unlimited’ data, and in many instances, it has failed to deliver on that promise,” said FTC Chairwoman Edith Ramirez. “The issue here is simple: ‘unlimited’ means unlimited.”


Here are all the details as per the FTC:

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According to the FTC’s complaint, AT&T’s marketing materials emphasized the “unlimited” amount of data that would be available to consumers who signed up for its unlimited plans. The complaint alleges that, even as unlimited plan consumers renewed their contracts, the company still failed to inform them of the throttling program. When customers canceled their contracts after being throttled, AT&T charged those customers early termination fees, which typically amount to hundreds of dollars.

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.

According to the FTC’s complaint, consumers in AT&T focus groups strongly objected to the idea of a throttling program and felt “unlimited should mean unlimited.” AT&T documents also showed that the company received thousands of complaints about the slow data speeds under the throttling program. Some consumers quoted the definition of the word “unlimited,” while others called AT&T’s throttling program a “bait and switch.” Many consumers also complained about the effect the throttling program had on their ability to use GPS navigation, watch streaming videos, listen to streaming music and browse the web.


The complaint charges that AT&T violated the FTC Act by changing the terms of customers’ unlimited data plans while those customers were still under contract, and by failing to adequately disclose the nature of the throttling program to consumers who renewed their unlimited data plans.

FTC staff worked closely on this matter with the staff of the Federal Communications Commission.
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The Commission vote authorizing the staff to file the complaint was 5-0. The complaint was filed in the U.S. District Court for the Northern District of California, San Francisco Division.

Have you suffered from AT&T's throttling practices? Let us know in the comments! Also, please follow iClarified on Twitter, Facebook, or RSS for updates on the case.


FTC Sues AT&T for Deceptive and Unfair Throttling of Users on 'Unlimited' Plans
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Comments (44)
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1
Snilwar
Snilwar - October 29, 2014 at 3:53pm
I've been a dedicated AT&T customer since it took over Cingular with a grandfathered unlimited data plan who pays my bill on time and all I ask for is reliable service and it took me damn near 2 minutes waiting for the comments page to load and I have full reception on LTE, smh.
1
Unlimited
Unlimited - October 29, 2014 at 11:26am
Finally! I've been waiting for this for a long time. Please keep us posted.
1
Wolverinemarky
Wolverinemarky - October 29, 2014 at 10:17am
Yep they conned me into switching to their 10gb plan with a promise of no throttling. I hope they have to pay up and I get some cash out of it
1
bolojohn
bolojohn - October 29, 2014 at 3:18pm
Same thing here, they made me to switch to 10 gb plan too...
SayingWhatEveryonesThinking
SayingWhatEveryonesThinking - October 29, 2014 at 7:27am
About time!
1
defiantmacho
defiantmacho - October 29, 2014 at 6:03am
Like everyone grandfathered on the so called "unlimited" data plan, I too get throttled every month within a week of every new cycle to speeds that feel slower than Edge. I've been holding on because I knew the government would eventually react. As a federal employee I tell you, the government builds their case and gather their data before making their move. It makes sense that it took this long for them to sue AT&T. I am not giving up my unlimited data plan. Now more than ever will I hold on to it. I just hope FTC built a solid case, and make AT&T pay dearly for this. To those that felt forced to abandon their unlimited data plan I say this; contact the FTC and let them know. Maybe they can get your unlimited plan reinstated as part of the settlement. Don't give up! Bless you FTC! Thanks for standing up for us!
1
AdamC
AdamC - October 29, 2014 at 3:01pm
I've been with AT&T for almost 8 years now with my unlimited data, which they keep trying to get me to swith! My phone can get to the point to we here I don't want to even use the Web after try throttle my data! I use almost 6 gigs a month and after the first 3, it's all over with!!! They really need to pay up for making us unlimited data plan users go through the terrible throttling data process!!!! I hate it!!!
JoshvanHulst
JoshvanHulst - October 30, 2014 at 12:55am
Man I feel the same way! I paying $150 just to have my unlimited data place on five of my lines. I have two lines that are unused and I am just keeping them incase someone wants an unlimited data line.
1
Unknown
Unknown - October 29, 2014 at 3:56am
About time they did this! Its only fair, we have grandfathered our unlimited plans! Why not keep it unlimited like the plan says it is! Not throttling us and slowing us down! Fix this AT&T!
1
adonay arias
adonay arias - October 29, 2014 at 3:33am
its being several times i have to reset my phone and actually believe there was something wrong with my device, now i know it was ATT playing games with me """"
1
Hung
Hung - October 29, 2014 at 2:56am
Finally Big Brother is watching over us. Thank you FTC. AT&T should pay dearly for this violation.
1
noypi
noypi - October 29, 2014 at 2:44am
finally...
1
Private Citizen
Private Citizen - October 29, 2014 at 2:35am
Issue now is they are offering 30GB to customers who are not throttled while loyal customers with actual unlimited data get throttled after 3GB. They bill a month in advance which is how they deceive customers billing them for services 30 days in advance which they haven't even used. I noticed If you pay 2 months in advance they don't throttle. Again it's deceiving and unfair to make only unlimited customers a target just to try and force them off the unlimited plan they first negotiated.
1
Iphone user since day 1
Iphone user since day 1 - October 29, 2014 at 2:29am
Yea I think it is BS! Unlimited means unlimited! They slow me down to the point where my Pandora radio app Buffers!!! When does Pandora buffer????? I hope they get through this swiftly and we get reimbursed and we get HOTSPOT.
1
Francisco
Francisco - October 29, 2014 at 1:47am
I have been throttled also and hope FTC does aiming about this
1
Joseph
Joseph - October 29, 2014 at 1:16am
They ( at t ) throttled my phone so heavily that I was virtually "forced" to give up my unlimited plan and was never able to get it back even after many attempts to do so and many complaints . Therefore I have decided to go over to T-Mobile for the iPhone 6 It all seems so unfair and why has it taken so long ? I am very interested in a legal case against them
1
Clifford Paul
Clifford Paul - October 29, 2014 at 12:50am
I have also suffered the throttled data speeds. Because I could not browse I had to try browsing more and resulting in exhausting my data plan and then had to purchase more 500mb for $20 until the next billing cycle.
1
Brian Coleman
Brian Coleman - October 29, 2014 at 12:42am
I'm going to say yes, I have been throttled as well. I was also told that I could not use my phone as a hot spot because I have unlimited data....that I must have the 5G or higher plan. I'm like WHAT?!
1
Michael
Michael - October 28, 2014 at 11:47pm
I try every month to not get throttled but every new iPhone my usage goes up so now with iPhone 6 I have been throttled every month I had no iPhone for 2 weeks waiting for launch and still got throttled I was like wtf and I use wifi at home and work so it's mostly in the car usage and yup been with AT&T since my first iPhone the 3G and was happy to go up to 5 gb since I payed full price for iPhone 5 once they launched lte in my area but really getting tired and since my main usage is music I could get the cheapest plan with T-Mobile since music is free but I like at&t's network but when I got limited use of it kinda makes me feel like I'm paying for something I can't use much so feels overpriced and if cable wifi picks up more then may no longer need em I don't watch movies or stream any video so how am I taxing there network that I have to get throttled regularly I could understand if I was using torrents and file sharing but I'm not so let us use our iPhone.
1
John doe
John doe - October 28, 2014 at 11:27pm
As a customer and sales rep, it technically is giving you unlimited data, and doesn't mention about throttling data. You can use all the "DATA" you want! but it will get throttled. I have unlimited data too, but being throttled sucks. Let's see how this goes.
1
Hey Hey
Hey Hey - October 28, 2014 at 11:02pm
although it is about time that somebody in the government "working" for us...but I am not fooled by this. I am sure all they want from AT&T is an increase in their payola...
1
Titan3636
Titan3636 - October 28, 2014 at 10:23pm
Yep it's terrible!!! When I hit 5gb every month it takes me down from about 25mbps to 0.5mbps. Such a joke. I really hope they have to lift that ban!!! Been an ATT customer for 7 years.
1
DarkKent
DarkKent - October 28, 2014 at 8:07pm
I just gave up my grandfathered unlimited plan this month behind them throttling me and not event being able to use my device.... Now to see this. Its a shame the way they treat long standing customers... Now i need to find out how I can get paid behind this. Its like i was forced off my plan... SMH
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