AT&T Fined $100 Million by FCC for Unlimited Data Throttling Practices

[MacRumors]

The United States Federal Communications Commission today announced plans to fine AT&T $100 million for misleading customers about its unlimited mobile data plans. Following an investigation, the FCC is accusing AT&T of severely slowing down the data speeds of customers with unlimited data plans and failing to adequately warn them about the slower data speeds.

In 2011, AT&T implemented a "Maximum Bit Rate" policy and capped the maximum data speeds for unlimited customers after they used a set amount of data within a billing cycle. The capped speeds were much slower than the normal network speeds AT&T advertised and significantly impaired the ability of AT&T customers to access the Internet or use data applications for the remainder of the billing cycle.

The FCC says AT&T violated the 2010 Open Internet Transparency Rule by falsely calling its plans "unlimited" and by not informing customers of the maximum speed they would receive under AT&T's Maximum Bit Rate policy. Millions of customers suffered slow data speeds, with some seeing speed reductions for 12 days per month on average.

On the decision, FCC chairman Tom Wheeler had this to say: "Customers deserve to get what they pay for. Broadband providers must be upfront and transparent about the services they provide. The FCC will not stand idly by while consumers are deceived by misleading marketing materials and insufficient disclosure."

AT&T ceased offering unlimited data plans years ago, but it continues to have customers with grandfathered unlimited data plans. AT&T previously throttled all of those customers after they exceeded 5GB of LTE data, but in May, AT&T implemented a policy change that sees customers being throttled only when connected to a cell tower experiencing network congestion.

Along with facing a $100 million fine levied by the FCC, AT&T is also involved in an ongoing lawsuit with the Federal Trade Commission over the same issue.

Article Link: AT&T Fined $100 Million by FCC for Unlimited Data Throttling Practices

 

[Dilster3k]

GOOD. I'd argue that 100 million alone doesn't cut it.

 

[AbblePC]

And the consumer is compensated in what way? I may have to Tweet ATT Support to inquire within.

 

[darnovo]

But who gets that 100 million? Not the customers who were robbed of their data correct? Some suits get it?

 

[TheBuffather]

Fantastic. Best news I've heard all day. AT&T deserved it. That's like a restaurant watering down your soup because you came during all-you-can-eat soup hour.

 

[AngerDanger]

It's nice to read about some litigation that stands to benefit the consumer.

 

[justperry]

The fine should be much higher, like 1 billion dollars minimum.

 

[kcamfork]

What I find annoying is, I fully accepted this years ago, and decided to just switch to a limited, family share plan, because I thought AT&T would continue this kind of garbage, or just do away with unlimited plans altogether. So because of their deceptive practices, I changed my plan. Can I go back to unlimited now? No. Ugh. Good. I'm glad they got fined $100 million. All of the telecoms are garbage.

 

[captain cadet]

Good! Could be more though...

 

[Jason83]

Well they already shook me down and forced me to drop the unlimited plan because they made it unusable. Too little too late!

 

[somebodyorother]

Look who's getting throttled now!

 

[justperry]

What I find annoying is, I fully accepted this years ago, and decided to just switch to a limited, family share plan, because I thought AT&T would continue this kind of garbage, or just do away with unlimited plans altogether. So because of their deceptive practices, I changed my plan. Can I go back to unlimited now? No. Ugh. Good. I'm glad they got fined $100 million. All of the telecoms are garbage in the U.S..

Fixed that for you.

 

[johnxw]

It is time the UK gov does something about the practice from Three, O2...

 

[Darx]

So the Federal government rakes in 100 million (chump change to AT&T) and the customers will still be rate limited?

 

[jwm]

The fine should be much higher, like 1 billion dollar minimum.

 

[WannaGoMac]

Well they already shook me down and forced me to drop the unlimited plan because they made it unusable. Too little too late!

Exactly. Thanks for nothing FCC. I dropped my unlimited as well because ATT made it almost impossible to keep it...

 

[aloshka]

This is such great news. Finally lying, false advertising , bait and switching is recognized for what it is. I hope FTC continues

 

[Jovian9]

And when do I get my 45 cents from this money since I've had an unlimited data iPhone plan since the beginning???? Or maybe it might even be a dollar

 

[justperry]

Haha, I actually wanted to add this picture.

 

[Thunderhawks]

Headline misleading. They have not gotten sued yet.
ATT will deduct 100 million from its profits, which reduces their taxes.
(i.e. the taxpayers pay also for this fine)

The fine will be pocketed by the FCC and goes into the overall government spending mess.

Since ATT put into their business conditions "no class action suit", we can't even get the usual $ 2.50 discount with the purchase of a car adapter.

No pain, no foul, nothing happened......moving on. Business as usual

 

[fhall1]

although as an AT&T grandfathered unlimited I won't see a dime of this - I can still say "suck it AT&T"

 

[iapplelove]

I sure would take some..they been throttling me hard since my iPhone 6 plus

 

[Kabdalla10]

So I am handicapped for a service I pay for, and then the government gets 100 million for my suffering? Glad AT&T got punished for their actions, but the money shouldn't be going to the government, it should be going to all of us who were affected by this act.

 

[Ndotp]

The United States Federal Communications Commission today announced plans to fine AT&T $100 million for misleading customers about its unlimited mobile data plans. Following an investigation, the FCC is accusing AT&T of severely slowing down the data speeds of customers with unlimited data plans and failing to adequately warn them about the slower data speeds.The FCC says AT&T violated the 2010 Open Internet Transparency Rule by falsely calling its plans "unlimited" and by not informing customers of the maximum speed they would receive under AT&T's Maximum Bit Rate policy. Millions of customers suffered slow data speeds, with some seeing speed reductions for 12 days per month on average.

On the decision, FCC chairman Tom Wheeler had this to say: "Customers deserve to get what they pay for. Broadband providers must be upfront and transparent about the services they provide. The FCC will not stand idly by while consumers are deceived by misleading marketing materials and insufficient disclosure."

AT&T ceased offering unlimited data plans years ago, but it continues to have customers with grandfathered unlimited data plans. AT&T previously throttled all of those customers after they exceeded 5GB of LTE data, but in May, AT&T implemented a policy change that sees customers being throttled only when connected to a cell tower experiencing network congestion.

Along with facing a $100 million fine levied by the FCC, AT&T is also involved in an ongoing lawsuit with the Federal Trade Commission over the same issue.

Article Link: AT&T Fined $100 Million by FCC for Unlimited Data Throttling Practices

 

[Ndotp]

AT&T sucks! After being grandfathered in for unlimited data for over 5 years, I just switched to a "cloud" plan because I heard about the throttling.... I wonder if I can somehow switch back.