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

[Bryan Bowler]

Is your plan currently available for new folks to sign up on? No. Do you wonder why? It is because it was a stupid thing for AT&T to offer. They now understand much better how much bandwidth can be used by iPhones and their customers.

AT&T should just end the plans and switch everyone over. Then you can sue them for breach of contract because you believe you now have an inalienable right to use AT&T's network as much your device and you can manage. You do believe that you have a loophole, hence you do believe you have a free ride. You do believe that other AT&T customers will pay more and you will pay less. If you don't see that you are delusional.

I'm sorry, but you're the one that's delusional. I have never stated nor do I feel that an unlimited data plan is my inalienable right. AT&T is the one that offers it to me every time I commit to a new contract with them, which happens to be every two years in my case. I don't demand it or even ask for it. AT&T offers it to me.

Why should AT&T have a right to advertise and offer me an unlimited data plan, and subsequently not spell out the exact terms of usage in the contract, and then arbitrarily do whatever they think is best? What if AT&T decided tomorrow that 500 mb of data should be the limit before Unlimited data plans are slowed to a screeching halt? It would be no different than what they are doing today. It is not clearly spelled out in the terms of the contract that they offered to me and we both agreed on.

Bryan

 

[rkuo]

I would love to have you explain how AT&T is a near monopoly.

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What would not be fair is not being allowed to switch to T-Mobile.

Perhaps you don't recall that the DoJ opposed the AT&T / T-Mobile merger on antitrust grounds? I don't think what I said requires much justification beyond that.

 

[burnside]

Is your plan currently available for new folks to sign up on? No. Do you wonder why? It is because it was a stupid thing for AT&T to offer. They now understand much better how much bandwidth can be used by iPhones and their customers.

Why do they have any plans over 5GB then if the bandwidth is being that stressed? This is all about money. Why did they introduce the Next plans? Just another way to rake in more money. Bandwidth is just an excuse.

 

[terraphantm]

You said it yourself. Breadsticks and bandwidth are not one and the same. You're argument is based on us rationalizing that they could be similar. They're no where similar.

1) a local restaurant is not one and the same as a national celluar company.
2) breadsticks do not face the same resource problems as bandwidth.

Is it reasonable to expect thAt your cellphone works in one method of use and the same way after you "consume" hundreds of YouTube videos? Absolutely. Why wouldn't it.

It's not reasonable to expect 1000 breadsticks. For the reasons you mentioned. Doesn't mean they're related though to the situation at hand.

What Att will probably do if they lose is terminate unlimited plans. Which they have every legal right to do.

Your understanding of how data impacts ATT is flawed as well. Sheer data usage has nearly no effect on AT&T.

Bandwidth is the problem. Trying to get thousands of people to access the same Internet on a limited amount of spectrum is just asking for trouble. It doesn't matter if all of these individuals are using a minimal amount of data. If they try to access it at the same time, the network will choke. Things like carrier aggregation and VoLTE will only make things worse.

What ATT should do is either subject all users to throttling, or changed to a tiered speed model. That way they might actually be able to manage their congestion. As it is now, throttling a small portion of users no matter when or where they use their data accomplishes nothing, except for incentivizing them to switch to a tiered plan.

 

[pdaholic]

Maybe those on here with bleeding hearts for ATT don't realize that it's not just that we are throttled after 5GB, it's that we once had no throttling at all, and then the restriction was forced upon us.

Also, if it's a very small fraction of people going over 5GB, then I'm sure a very large number of that small fraction is like me: I don't always go over 5GB, and when I do it's usually a total of 6 or 7 GB for the month. Yet the restrictions likely occurred for those using really large amounts of data like 50GB or more...yet we all have to suffer. 5GB is really a pretty puny amount of data when you think about it.

 

[ToroidalZeus]

Now I'm no lawyer, but even I know exactly what the heck they're talking about here. I do not see a single mention of how fast your service will be, only that they can restrict what ever it is if they feel you are using data in a prohibited manner.

That further adds to the fact that AT&T mislead customers about their wireless service being unlimited.

It might be legal for AT&T to throttle data (or maybe not) but it's not legal to 'mislead' customers.
The FTC is suing over "misleading" the customers, not "throttling" the customers.

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Your understanding of how data impacts ATT is flawed as well. Sheer data usage has nearly no effect on AT&T.

Bandwidth is the problem. Trying to get thousands of people to access the same Internet on a limited amount of spectrum is just asking for trouble. It doesn't matter if all of these individuals are using a minimal amount of data. If they try to access it at the same time, the network will choke. Things like carrier aggregation and VoLTE will only make things worse.

What ATT should do is either subject all users to throttling, or changed to a tiered speed model. That way they might actually be able to manage their congestion. As it is now, throttling a small portion of users no matter when or where they use their data accomplishes nothing, except for incentivizing them to switch to a tiered plan.

AT&T isn't looking to be fair, they are looking to generate as much revenue with the minimum expenses possible. hence throttle till they sign up for a tired plan.

 

[PadreQuevedo]

It's not AT&T's fault. It's their costumers'.
T-Mobile has been warning people for years but they don't listen.

 

[fwillink]

They started throttling in 2010 to my longstanding unlimited data plan. Call to tech support stated they started throttling at 5gig to all top tier customers. They would turn off the throttle but it would immediately start again. They further stated that they "no longer wished me as a customer". The throttling repeated the following month with the same statement making the data plan useless. Their wish came true soon after. At the time I was working in a total mobile environment.

 

[miniyou64]

terrible mentality to have and i hope you never work as a lawyer.

a contact (or terms of service) aren't legal until the text is backed up by enforcement of law. Until a court rules AT&T has the right to throttle data it isn't legal even if you signed the contract and their loop hole allows for it.

Haha typical. So in your world a private contract that two parties voluntarily agree upon doesn't mean anything to you until the government comes and points their guns to back it up?

 

[ToroidalZeus]

Haha typical. So in your world a private contract that two parties voluntarily agree upon doesn't mean anything to you until the government comes and points their guns to back it up?

Ironically that is exactly how it really works in the real world. (google unenforceable contracts)

 

[gimikinc]

Goodbye to unlimited?

AT&T liked getting the unlimited dollars expecting no one would use? Then throttle! Sadly unlimited didn't say at LTE or 3G speeds so will they just leave intact throttling or just close this offering forcing everyone to measured plans.

Seems the question of unlimited is from the standpoint of what everyone expected full speed not throttled.

AT&T is such a lame carrier!

 

[Prelate74]

What text message?

They said they send a text message when your about to be throttled? They throttle me EVERY month, and I have NEVER gotten a warning text message!

 

[sailmac]

I think you do not understand words: unlimited data, unrestricted bandwidth. If you restrict bandwidth, you are going to limit "unlimited data"-it is absolutely logical and technical statement. I do not think you possess any technical or logical skill according to your statement.

Thanks for that fine assessment concerning my command of language, coupled with that rich insight into my technical skills and logic.

Nuance, my friend, nuance!

(For what it's worth, I don't approve of AT&T's actions. I do believe, however, that they have the upper hand in this litigation. I'll be cheering happily with the rest of you if they lose and I am proven wrong! )

 

[garylapointe]

Could someone explain why AT&T grandfathers some plans? Are they legally obligated to do so? What is preventing them from simply forcing anyone who upgrades a phone to use one of the new data plans?

In my personal experience, they (and other companies) grandfather plans all the time. To cancel the plan would (probably) be to allow to to immediately end your contract (and no fees?), since they canceled it.

We generally think of grandfathering as keeping something that they are taking away but sometimes it's just the old plan that you signed up for while they've replaced it with a newer chapter plan. If you never changed your landline plan, you might still be paying 30 cents a minute for long distance, where most cheaper new plans are 5 cents a minute, they just kept you on the old plan and people never asked for anything better (you'd be surprised at how many places are still on old plans that pay extreme rates because no one bothered to call and ask).

Gary

 

[namtrig]

Go FTC!!!

As an unlimited customer and someone who has been impacted by AT&T throttling, what frustrates me most is the position that they are protecting their network from the heaviest users. Their latest plan offerings being advertised claim to double your data plan. The example they give is buy 15 GB per month and we'll double it to 30 GB!!! If they can actively promote 30 GB plans to new customers, then they should not be throttling unlimited plan owners at 2 GB!!

It's not a network capacity issue either. Once I hit 2-3 GB in one billing cycle, it does not matter what time of day I try to use my plan. It's slow at 4am! If they are going manage the network than it should be consistently applied to all customers!!!

Another example... When they enabled FaceTime calls over cellular for everyone BUT those with an unlimited plan!!!

 

[michaelsviews]

Simple

AT&T and other networks are NOT what they say they are and CANNOT handle the demand for data.

I'm NOT a wireless network engineer but I'm sure if you put them in the hot seat there'd be a whole different story of just how wonderful these networks are NOT.

AT&T or Verizon , does not matter they all lie through there teeth.

 

[Archer1440]

I encountered "throttling" for the first time last month when I let my new 6 Plus restore from cloud backup over the air.

No text or any other kind of message, just a sudden date rate change from ~14-15 Mbps to 0.19-0.20 rendering data completely useless for almost two weeks remaining in the billing cycle.

That's not throttling, that is outright shutting off.

 

[MacAddict1978]

AT&T should also be sued for not offering better deals for iPhones and not having a option like unlimited data instead forcing customers to go with the sharing data plan. This cell phone services are nothing more than like cable companies cornering customers where they have no option for a better deal.



T-Mobile has better deal but the coverage sucks why I do not understand when T-Mobile can really become a powerful competitor.

Cant sure a company for not selling something.... thats kind of pushing a warped version of communism.

Though what people are paying for what is in turn only 5gb of data and not unlimited is hillarious.

TMo has great coverage in some places, not so much in others.... but its costs money to build out a network and they are just growing customers for the first time in almost ten years! And they are putting money into their network as fast as they can.

Tmo plans are all unlimited data... but they clearly tell you, if you have the 5gb plan, you throttle the rest of the month. BUT their unlimited plan has NO THROTTLING.

If you live in an area where tmo coverage is good and are holding onto your att unlimited plan, or using att or verizon, you're a fool.

Tmo sucked in Pittsburgh, but when they turned LTE on, it was like heaven rained down upon the city. Places I couldn't even make a call before I know have full data speeds. Hopefully this comes to a town near you soon.

 

[LordBeelzebub]

Here is the ironic thing about this. If AT&T wasn't informing people that they were throttling people, then how does every single person know that their doing it? Everyone replying here knows they've been doing it. So then what basis does the FTC have to go on? The FTC's action on this is probably due to the overwhelming complants from consumers that they think it's unfair more than people didn't actually know this practice was taking place.

 

[McDaddio]

AT&T agreed under contract to supply them with unlimited data, not throttled speed data, or capped data, "unlimited."

No, you are 100% wrong.

AT&T specifically contracted that they have unlimited data (e.g. no overage charges) AND that once they reach 5G in a month that they would be throttled.

I find it amazing that people don't understand what the actual contract agreement was and keep asserting that it was unlimited data not unlimited speed and data. There was a specific limit on speed.

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If AT&T removes grandfathered unlimited data plans, I have NO problem whatsoever going to T-Mobile while paying a lot less and getting a lot more.

If you can get more for less, why don't you just go to T-Mobile now?

Do you like paying more for less?

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If AT&T doesn't want it, they shouldn't have sold it.

Unlimited means what it says,

AT&T delivered exactly what they sold.
- Unlimited data - e.g. no overage charges.
- Speed throttled after hitting 5G in a month.

That is exactly what the terms of what they sold is. Unfortunately, people don't know what is going on and make silly claims that they sold something else and they are backing off of it.

 

[minus.toes]

I feel for these customers, honestly.

Try coming to Japan, where foreigners always seem to think we are so technologically advanced. SoftBank (carrier) lists a talk + data plan as "unlimited", but when you inquire about it, they tell you it's really only 7gb of data per month. Apparently the word unlimited doesn't translate well here.

And all of the carriers - Docomo, SoftBank and AU - give you the choice of data plans in the 2gb ($35), 3gb, 5gb, 8gb, 10gb and 13gb ($98) data range per month, at which time if you go over your monthly data, they throttle the speed to that of making the phone barely usable (in their words).

So I feel for the throttling in the States, but it sucks even harder here. Nothing like paying $100/mo for a phone/data plan, and being forced to shelve the phone halfway thru the month or be forced to use wifi to continue forward.

 

[McDaddio]

I think you do not understand words: unlimited data, unrestricted bandwidth. ...I do not think you possess any technical or logical skill according to your statement.

I think you don't understand that they NEVER offered unrestricted bandwidth.
You are just making stuff up.

I do not think you possess any understanding according to your statement..

 

[or8ital]

No, you are 100% wrong.

AT&T specifically contracted that they have unlimited data (e.g. no overage charges) AND that once they reach 5G in a month that they would be throttled.

I find it amazing that people don't understand what the actual contract agreement was and keep asserting that it was unlimited data not unlimited speed and data. There was a specific limit on speed.

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If you can get more for less, why don't you just go to T-Mobile now?

Do you like paying more for less?

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AT&T delivered exactly what they sold.
- Unlimited data - e.g. no overage charges.
- Speed throttled after hitting 5G in a month.

That is exactly what the terms of what they sold is. Unfortunately, people don't know what is going on and make silly claims that they sold something else and they are backing off of it.

When your phone is rendered useless by severe restriction of data then I don't consider that "unlimited".

 

[McDaddio]

When your phone is rendered useless by severe restriction of data then I don't consider that "unlimited".

It really doesn't matter what you consider.

What matters is did you get what you contracted for?

You got no overage charges.
You got throttled after 5G.
Those are the terms you signed up for.

If you don't like it, cancel. Just, please, don't feel so entitled to something you didn't buy.

 

[minus.toes]

I agree that reading the terms and conditions of the contract BEFORE you sign is utterly important, as well as asking lots of questions and I typically verify those answers from in-store with a customer rep on the phone. Overkill, perhaps? But I've lost count of the number of times a store rep in person told me X, and then the person on the phone told me Y.

I'm not in the States, but when I was living there, and had various "unlimited" plans with Sprint, it was pretty much a given that unlimited was the amount of usage, nothing to do with the speed/bandwidth of said usage.

We don't even have unlimited data plans here in Japan. For a single user, I think the highest plan I've seen was 18gb/month and it would be the equivalent of $210/month (just for data).

Prices suck here for everything.