FTC Sues AT&T Over 'Misleading' Unlimited Data Throttling Practices [Updated]

[SoAnyway]

I have come to a conclusion after reading a few posts in this thread, the only thing worse than AT&T screwing its customers are the AT&T apologists who defend them.

To the apologists, it's not as simple as "voting with my wallet" when the only choice for unlimited data was AT&T and Verizon for a long time. Sure, Sprint then T-Mobile did eventually come along however, we were all still tied to 2 year contracts, which are a pain to get out of.

When ever I was throttled, I called AT&T to complain and you know what they did? They tried to sell me a tiered plan. Seriously, why would I or anyone go from an unlimited plan to a tiered plan?

One last thing to the apologists, the term unlimited literally means without limits, this applies to the data and the speed that data is delivered. Get that through your thick skulls.

 

[Windlasher]

There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else. - Sam Walton

It ways right in the contract that they can throttle, or get rid of you if they don't like how YOU are using THEIR network. Those were the terms that were agreed upon. You don't like what AT&T is doing to your data? Go somewhere else. They'll pay for it that way. This bureaucracy is totally unnecessary...

IF everyone on ATT switched today, your plan still wouldn't work. Each carrier owns/rents a certain amount of the cellular spectrum. None of the other carriers have the bandwidth to handle a few hundred mil new customers out of the bat, the customer service to support them, or the phones to supply them all. ATT knows this, the FCC knows this, and the other carriers know this, which is why they can do whatever they want.

If every ATT customer jumped to T-moble tomorrow, you would have to worry about being throttled. You would be lucky to get a decent signal at all.

 

[bradl]

About Fing time!

I've not been throttled but 5GB is not equal to unlimited... It's bold faced lying. They don't throttle people who pay for 20GB when they reach 5GB...

Unfortunately, you are wrong here.

As said plenty of times in this thread, your data usage is unlimited. The speed of the data - how fast you get the data on your phone - is something completely different.

If you notice on your bill, if you have been throttled after consuming 5GB of data, and you consumed 12GB of data for the month, your monthly bill did not go up. If someone on a family share plan went over their cap on their data plan, they get charged for the data that exceeded their plan. You do not.

You are trying to equate two different things and aren't getting the difference between the two.

Disclaimer: I'm also on the grandfathered plan, and have been (and currently am) throttled; I'm at 3.2GB on my iPhone 4S, where I'm getting throttled at 3GB.

BL.

 

[Carlanga]

Once I reach exactly 5gb of data I am trotthled to 1/4 of edge speeds. No txt or nothing from them either. I don't mind the trouble as long as I can open a web page that has more than 1 image.
Good guy FTC to the rescue!

 

[giantfan1224]

One last thing to the apologists, the term unlimited literally means without limits, this applies to the data and the speed that data is delivered. Get that through your thick skulls.

This just isn't true. If it were you'd have a legitimate gripe.

 

[burnside]

As said plenty of times in this thread, your data usage is unlimited. The speed of the data - how fast you get the data on your phone - is something completely different.

If you notice on your bill, if you have been throttled after consuming 5GB of data, and you consumed 12GB of data for the month, your monthly bill did not go up. If someone on a family share plan went over their cap on their data plan, they get charged for the data that exceeded their plan. You do not.

I completely understand all this, but it is AT&T who is deciding what is "unlimited" still. Why don't they just drop the throttle line down to 2GB then? We still get unlimited data, right? If I show you a chart that shows 5GB, 10GB, and 20GB, where would you slot Unlimited?

 

[tdmd]

I think we need Class Action Lawsuit status and they need to remove this throttling 100%! You can't tell me that these long time loyal customers are killing the network even with heavy usage!

Finally they throttled the wrong person!

No they can't say that because they're giving away FREE data to everyone with their double data 10GB-->20GB promotion. so the argument of network congestion goes out the window since they're giving away free data.

 

[bradl]

I completely understand all this, but it is AT&T who is deciding what is "unlimited" still. Why don't they just drop the throttle line down to 2GB then? We still get unlimited data, right? If I show you a chart that shows 5GB, 10GB, and 20GB, where would you slot Unlimited?

Unlimited would be slotted to the right of the highest data plan they have.

Unlimited means exactly what it means; unlimited. But what does that have to do with the speed of the unlimited data you are receiving?

BL.

 

[tdmd]

Unfortunately, you are wrong here.

As said plenty of times in this thread, your data usage is unlimited. The speed of the data - how fast you get the data on your phone - is something completely different.

If you notice on your bill, if you have been throttled after consuming 5GB of data, and you consumed 12GB of data for the month, your monthly bill did not go up. If someone on a family share plan went over their cap on their data plan, they get charged for the data that exceeded their plan. You do not.

You are trying to equate two different things and aren't getting the difference between the two.

Disclaimer: I'm also on the grandfathered plan, and have been (and currently am) throttled; I'm at 3.2GB on my iPhone 4S, where I'm getting throttled at 3GB.

BL.

there's no justification for the throttling of select users. that's the point. it's not a network congestion issue because they're giving away free data willy nilly (recent double data promotion 10GB-->20GB)

 

[giantfan1224]

I completely understand all this, but it is AT&T who is deciding what is "unlimited" still. Why don't they just drop the throttle line down to 2GB then? We still get unlimited data, right? If I show you a chart that shows 5GB, 10GB, and 20GB, where would you slot Unlimited?

It's obviously a maneuver to attempt to get the grandfathered unlimited subscribers into a tiered plan. I switched long ago, am able to tether, don't have to worry about being throttled and, except for just a couple times, haven't had to worry about going over my data allotment. I thought I would always stubbornly stick with the unlimited plan but now I save more by being able to take advantage of a mobile share plan with my parents--who use next to nothing in data.

 

[tdmd]

I have no problem being throttled if I'm using excessive amounts of data (which is not 2, 5, or even 10 gigs) but don't slow my speed down so much that I can't even send a MMS message. Throttled speeds for me have been .01 Mbps upload and download. That's as good as having data turned off.

Unlimited means unlimited. Data isn't going to run out, it doesn't need to be conserved.

amen, you can throttle me down to 1Mbps or 2Mbps. but .01 Mbps is just ridiculous.

 

[xStatiCa]

Fixed that for them...

"In addition, this program has " raped "only about 3% of our customers, and before any customer is" raped ", they are also notified by text message."

We were notified before raped so that makes it ok.

Seriously though my wife transitioned to the Family plan because it was more cost effective for us with multiple devices. For those that use a lot of data though I can certainly see where they wouldn't like to do that. We just never used more than 2GB even with an iPad on the plan. We are on WiFi 99% of the time. Our bill was reduced by about $40 by doing so compared to the separate plans.

 

[alphaod]

Awesome!! Maybe this ends in AT&T giving us grandfathered in the plan real unlimited data without throttling.

Or kick everyone off them.

 

[burnside]

Unlimited would be slotted to the right of the highest data plan they have.

Unlimited means exactly what it means; unlimited. But what does that have to do with the speed of the unlimited data you are receiving?

BL.

Like I said, it's deception. The experience of having an "unlimited" data plan has changed since it's inception. Anyone who has a grandfathered unlimited data plan isn't really "grandfathered" in because their unlimited plan is no longer the same.

 

[Prissy]

about time...

 

[giantfan1224]

No they can't say that because they're giving away FREE data to everyone with their double data 10GB-->20GB promotion. so the argument of network congestion goes out the window since they're giving away free data.

The promotion is to match what the other carriers are doing, not necessarily just because they have data to give away. I'm, for one, glad about it because the fierce competition between the carriers can only be a good thing for us consumers.

 

[rjohnstone]

One last thing to the apologists, the term unlimited literally means without limits, this applies to the data and the speed that data is delivered. Get that through your thick skulls.

Read your contract.
Data speeds are not guaranteed or implied.
Your interpretation of "unlimited" is irrelevant to what the definition in the contract states.
Get that through your thick skull.
Next time you agree to a contract, try READING it first.

I'm no AT&T apologist. I didn't like what they did to the "unlimited" plan, so I picked up my toys and left. Not playing their game anymore.

 

[sailmac]

If the terms were as transparent as AT&T says, then I would imagine the only thing the FTC can hope to achieve out of this is to get AT&T to stop using the word "unlimited".

I don't see how this is otherwise actionable. If the end user signed an agreement which ostensibly spelled out throttling, then all the FTC can do is make them change the wording. No one got less than they signed up for.

Exactly.

I get the feeling a significant amount of court room haggling will be over the meaning and semantics of "unlimited".

"Unlimited data" -- AT&T will claim they only ever offered unlimited data, and that they do not turn off data to these customers when they are in good standing.

"Unlimited bandwidth" -- AT&T will claim that they never advertised nor offered nor contracted for unlimited bandwidth.

"Unrestricted data" -- this is what customers desire, but AT&T will claim they never offered nor contracted for it.

"Unrestricted bandwidth" -- customers also desire this, but again AT&T will claim they never offered nor contracted for it.

I expect AT&T will argue vigorously that "unlimited" does not equal "unrestricted". Then they will argue vigorously that because they did not contract "unrestricted data or bandwidth" by extension what they have contracted is in fact "restricted data and bandwidth". Then they will argue vigorously that "throttling" is a legitimate and practical means of managing the "restricted data and bandwidth" they have contracted with the customer.

AT&T will boldly respond to the court saying, "Yes, your honor, unlimited means unlimited -- just as unrestricted means unrestricted. We contracted for unlimited data -- not unlimited bandwidth, not unrestricted bandwidth, and not unrestricted data. The language is unambiguous and we have done nothing wrong."

Please don't get me wrong -- I'm not condoning AT&T's actions. I just don't see the FTC wringing much out of this that will be favorable to customers.

 

[bradl]

Like I said, it's deception. The experience of having an "unlimited" data plan has changed since it's inception. Anyone who has a grandfathered unlimited data plan isn't really "grandfathered" in because their unlimited plan is no longer the same.

My wife and I have had our plan since the iPhone 3G. My plan, nor the bill for said plan has changed in the 7 years since we've had it; throttling and all.

BL.

 

[TallManNY]

I have come to a conclusion after reading a few posts in this thread, the only thing worse than AT&T screwing its customers are the AT&T apologists who defend them.

To the apologists, it's not as simple as "voting with my wallet" when the only choice for unlimited data was AT&T and Verizon for a long time. Sure, Sprint then T-Mobile did eventually come along however, we were all still tied to 2 year contracts, which are a pain to get out of.

When ever I was throttled, I called AT&T to complain and you know what they did? They tried to sell me a tiered plan. Seriously, why would I or anyone go from an unlimited plan to a tiered plan?

One last thing to the apologists, the term unlimited literally means without limits, this applies to the data and the speed that data is delivered. Get that through your thick skulls.

You should get it through your thick skull that nothing can actually be "unlimited". It was a stupid thing for AT&T to sell but they should also be allowed to return the actual service back to the realm of the reasonable and not be beholden to a "gotcha" from a handful of customers until the end of time. Just pay for what you use. It is a simple concept. If you use more than other customers, pay more than other customers.

How long do you and others think you deserve your free ride on this plan? Serious question. Is it your believe that you have a legal right to unlimited data through AT&T's network for your iPhone or whatever future device you associate with that phone number? And that this device goes on forever? Even past your death (since contract rights can be past on as an inheritance)?

 

[Renzatic]

You should get it through your thick skull that nothing can actually be "unlimited".

Unlimited in this case would be that your plan was sold under the assumption that there would be, appropriately, no set limit on the amount of data you can consume in a month before you're charged overage fees. Much the same way you use your landline internet connection.

 

[figaro331]

Dirty, greedy,shameful bastards !

[url=http://cdn.macrumors.com/im/macrumorsthreadlogodarkd.png]Image[/url]


The Federal Trade Commission (FTC) of the United States today filed a federal court complaint against AT&T, accusing the carrier of misleading its smartphone customers by charging them for unlimited data while reducing their data speeds by up to 90 percent.

According to the FTC, AT&T did not adequately explain to customers with unlimited data plans that they would be throttled if they reached a certain amount of data during a billing cycle. AT&T also did not inform customers of the throttling when they renewed their unlimited contracts.

Image​

AT&T ceased offering unlimited data plans to customers several years ago, but has allowed Grandfathered customers to retain those plans. AT&T implemented throttling shortly after eliminating its unlimited data plans, initially restricting throttling to only its highest usage customers but later capping data for everyone on an unlimited plan. Currently, customers on unlimited plans are able to use 5GB of LTE data or 3GB of 3G data, after which AT&T throttles their data speeds.

The FTC alleges that AT&T throttled customers who had used as little as 2GB of data beginning in 2011, and that the throttling is severe, "resulting in speed reductions of 80 to 90 percent for affected users." AT&T is said to have throttled 3.5 million customers more than 25 million times, violating the FTC Act in the process.

Update 11:15 AM PT: AT&T has given a statement to MacRumors in response to the FTC's "baffling" complaint, stating that the allegations are "baseless" and that it has been "completely transparent" with customers.

Article Link: FTC Sues AT&T Over 'Misleading' Unlimited Data Throttling Practices [Updated]

I'm really glad about this - I do have grandfather's unlimited plan for many years and those bastards, appropriate term for them,throttled me for so many times. They never sent me any text messages,liars, I just found out about when I've stopped by at a local AT&T store ! Finally, they are getting fair evaluation from FTC ! I'm going to pray that these greedy and shameful bastards will be punished financially - that would bring peace to my heart !

 

[AppleFan360]

Mark my words, this will end the unlimited data plan. AT&T will take their ball and go home.

Personally I don't miss it. Ever since I switched to the mobile share plan I'm giving them less money.

 

[Z400Racer37]

So, when people signed their contracts in 2007, it mentioned being severely throttled? Alright...

No, it mentioned unlimited data. Which it is. It also said they have a right to end your contract or reduce the speed of your service if they deem that you are detrimental to the performance of their network. If you don't like it, use someone else's service. Simple.

IF everyone on ATT switched today, your plan still wouldn't work. Each carrier owns/rents a certain amount of the cellular spectrum. None of the other carriers have the bandwidth to handle a few hundred mil new customers out of the bat, the customer service to support them, or the phones to supply them all. ATT knows this, the FCC knows this, and the other carriers know this, which is why they can do whatever they want.

If every ATT customer jumped to T-moble tomorrow, you would have to worry about being throttled. You would be lucky to get a decent signal at all.

Then I guess you're better off staying with AT&T then huh? Maybe stop endorsing gratuitous litigation etc? Maybe get mad at the FCC for binding and allocating spectrum instead?

 

[kwalt1989]

besides being a terrible analogy, it again demonstrates the entitlement mentality.

you believe that you should be served by the waiter as fast as YOU want.

If the restaurant is packed and the stoves can't bake as many breadsticks as customers want, of course there will be a delay.

Protip: not many businesses engineer their delivery based on serving peak demand, and those that do, probably have a very high cost of service.

That business shouldn't offer UNLIMITED breadsticks then. They are paying for unlimited data and AT&T agreed under contract to supply them with unlimited data, not throttled speed data, or capped data, "unlimited." It has nothing to do with entitlement. They should be getting as much as they want to consume without restrictions or limitations. The customers aren't the ones who offered unlimited in the first place, AT&T is and they are at fault.