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

[macwh0re]

Again, not in the contract that I signed with them. This is something they've decided to do after the fact. But hey, I do understand that cell phone companies can make plenty of changes and their contracts are written that way to give them the legal authority to do so. However, the way they are applying it is not morally or legally sound.

AT&T is severely throttling one subset of customers to the point their phones are for all intents and purposes unusable on the network and they do so in the name of "protecting network resources for all". However, if you want to "pay a little more money", then you are free to use 600-1000% more data with no bandwidth restrictions at all. I can't believe that a few folks here are defending this practice and can't see the issue with this and how/why it is completely wrong.

Bryan

The first article was dated July, 2011 so I fail to see how that's after the fact. I quoted their terms of service which you agree to with or without signing a 2 year contract.

Section 6.2 of their wireless service agreement.

"AT&T may reduce your data throughput speeds at any time or place if your data usage exceeds an applicable, identified usage threshold during any billing cycle. AT&T will provide you with advance notice of the usage threshold applicable to your data plan, or any changes to the applicable usage threshold either by a bill insert, email, text message or other appropriate means;"
"AT&T may engage in any reasonable network management practice to enhance customer service, to reduce network congestion, to adapt to advances and changes in technology, and/or to respond to the availability of wireless bandwidth and spectrum;"
"Unlimited Data Customers. If you are a grandfathered AT&T unlimited plan data service customer, you agree that “unlimited” means you pay a fixed monthly charge for wireless data service regardless of how much data you use. You further agree that “unlimited” does not mean that you can use AT&T’s wireless data service in any way that you choose or for any prohibited activities, and that if you use your unlimited data plan in any manner that is prohibited, AT&T can limit, restrict, suspend or terminate your data service or switch you to a tiered data plan."

https://www.att.com/shop/en/legalterms.html?toskey=wirelessCustomerAgreement

 

[asylumsquared]

For you AT&T lovers that continue to defend AT&T on how it is their right to throttle your data, take it or leave it:

AT&T has been offering unlimited calling since the birth of the Mobile Share Plans. This means that if you have AT&T cellular service that you may call any other mobile subscriber that is within the United States (T-Mobile, Sprint, Verizon, MetroPCS, Cricket, US Cellular, Straight Talk, TracFone, Boost, Virgin, you get the hint) and any wired line that is also within the United States.

So let's say that our culture changes and we begin to talk more instead of texting, emailing, FaceTiming, Facebook Messaging, etc. Every AT&T customer starts to talk 60 minutes longer each day. AT&T's towers aren't able to handle this extra load so they start sending a text, email, and update info on their website that states that if you talk for more than "x" amount of minutes in a month, that you will start to regularly have a static-filled connection. You might not be able to understand the person you are speaking with. You will still get an unlimited amount of talk time but the quality of the phone calls is not guaranteed. But if you talk for less than "x" amount of minutes or you switch to one of their higher tiered plans that offers 3000 anytime minutes that might cost a little more, you will have no connection issues at all.

I know this would infuriate a lot of people and yes, as a consumer I have the right to change. I can choose another carrier because of the a**-backwards way that AT&T has gotten me to pay more money because of a shift in demand for what people want. The reason we complain and want something done is because for those of us that haven't changed our plans for 5, 6, 7 years, or longer feel that for our loyalty we deserve what was originally presented to us when we chose AT&T to be our service provider. We have stayed loyal and we don't want to just be treated like a number because a large corporation wants to try and nickel and dime us because they see us as a dollar sign and nothing else.

 

[Septembersrain]

I can see how this will end. They will no longer grandfather anyone in. You'll be forced to go on their new plans. Sure they'll lose this battle but they'll make consumers pay to win the war.

 

[Z400Racer37]

I'm going to have to skip all the other incorrect thinking here and cut straight to the point, which is that you do actually think AT&T can basically screw all of its current customers legally due to the contract language saying something about bandwidth. That opinion is completely out of touch with both common sense and contract law, so there isn't any point in trying to convince you otherwise. Good luck with that.

You want common sense? Try this on. AT&T's network does not belong to you. Therefore, you only have the right to use it under the terms which AT&T agrees to let you under the terms of the contract that you signed. It's not like its a formality, how petulant and absurd.

Yeah, AT&T can do what it wants with their network. And you still haven't addressed how it would make them more money, and therefore incentivize them to "basically screw all of it's customers." Although, I'm sure you just don't have the time to explain all that incorrect thinking.

You have successfully negated none of my points, and saying it lacks common sense to say what I've said is pretty inferior without backing up such a statement with logic. I bet you will have to skip over all my incorrect thinking, since you can't seem to nail down a single point. How else are you going to maintain your delusion that you actually know what you're talking about?

 

[asylumsquared]

Edited.

 

[Bryan Bowler]

You want common sense? Try this on. AT&T's network does not belong to you. Therefore, you only have the right to use it under the terms which AT&T agrees to let you under the terms of the contract that you signed. It's not like its a formality, how petulant and absurd.

I think we understand that AT&T is the master of their own network.

I also can't believe all of the "you can take the slap to the face by AT&T or leave" mentality that few of you have. Yea, we totally understand that as a consumer we have choices of other carriers. Your not telling us anything new. But unlike a few of you, some of us are not afraid to walk away from a battle and we're not afraid to stand up for what's right. I'm going to sort this thing out with AT&T and yes, I may take them to small claims court if I need to.

Bryan

 

[Z400Racer37]

I think we understand that AT&T is the master of their own network.

I also can't believe all of the "you can take the slap to the face by AT&T or leave" mentality that few of you have. Yea, we totally understand that as a consumer we have choices of other carriers. Your not telling us anything new. But unlike a few of you, some of us are not afraid to walk away from a battle and we're not afraid to stand up for what's right. I'm going to sort this thing out with AT&T and yes, I may take them to small claims court if I need to.

Bryan

There is no nobility in trying to use the force of an immoral government to extract value from a company that violated no laws, or contracts. There was nothing in the contract stating that they would provide the data at the maximum speed possible, therefore there is no moral grounds for a suit. Any "battle" or lawsuit initiated by customers, citing reasons that are not violations of the contract that was agreed upon by the two parties is absurd, and any judgement upholding such childish behavior is evil, and nothing short of that. You want to stand up for what is right? Accept the terms of your contract for what they were, and stop forcing private companies to give you something that you're not owed, using the guns of the government to do it. That is theft. That is evil.

 

[rkuo]

You want common sense? Try this on. AT&T's network does not belong to you. Therefore, you only have the right to use it under the terms which AT&T agrees to let you under the terms of the contract that you signed. It's not like its a formality, how petulant and absurd.

Yeah, AT&T can do what it wants with their network. And you still haven't addressed how it would make them more money, and therefore incentivize them to "basically screw all of it's customers." Although, I'm sure you just don't have the time to explain all that incorrect thinking.

You have successfully negated none of my points, and saying it lacks common sense to say what I've said is pretty inferior without backing up such a statement with logic. I bet you will have to skip over all my incorrect thinking, since you can't seem to nail down a single point. How else are you going to maintain your delusion that you actually know what you're talking about?

Take your Ayn Rand ridiculousness somewhere else. You don't understand law and you don't understand that a monopoly or business with sufficient dominance in its field can succeed by oppressing its customers, not by providing a better service. The exact opposite of what someone like Ayn Rand would have wanted. Good companies in the libertarian tradition should survive by providing more value, not by squeezing out or acquiring competition and then playing games with its customers.

I took your assertion to its logical conclusion and showed it to be fallacious, so how is that not negating your point? The behavior of AT&T in regards to its unlimited customers is simply a smaller scale case of customer deception and fraud ... One small enough to not kill the company, but nonetheless illegal and oppressive. The choice and ability of customers to walk away does not absolve the company of its deceptive behavior.

Luckily, smarter people with more nuance and less dogma than you are looking into it.

 

[Bryan Bowler]

There is no nobility in trying to use the force of an immoral government to extract value from a company that violated no laws, or contracts. There was nothing in the contract stating that they would provide the data at the maximum speed possible, therefore there is no moral grounds for a suit. Any "battle" or lawsuit initiated by customers, citing reasons that are not violations of the contract that was agreed upon by the two parties is absurd, and any judgement upholding such childish behavior is evil, and nothing short of that. You want to stand up for what is right? Accept the terms of your contract for what they were, and stop forcing private companies to give you something that you're not owed, using the guns of the government to do it. That is theft. That is evil.

Ha ha ha! That is funny! (The idea that thinking an unlimited data plan should in fact be unlimited...but you think it's theft and evil to think that way.)

Actually, I'm glad that we have a system in place to at least help with consumer protection. It's not perfect by any means, but without it, we'd all be in a world of hurt.

Bryan

 

[ktuck]

This is vague at best.

1. Where are you coming up with 44%? Please link your source.

2. What plan would I change to and why would I request a double data allotment?

This is the second time I've provided the source of the 44% figure.

You said that AT&T told you that switching from an unlimited plan to 6GB wouldn't save you money. Last month, we switched from the Unlimited Plan to a shared data plan and saved $70/mo in doing so. A few days ago, I found out that AT&T was doubling the data for people who requested it. (I think the program is over now - see slickdeals.net) So, I requested it and they did.

This is the gist of the matter:
“AT&T promised its customers ‘unlimited’ data...” said Ramirez in a statement. “The issue here is simple: ‘unlimited’ means unlimited.”

Sorry, there's more I'd like to say but I've got to go work out. I have a lifetime membership at 24 Hour Fitness and want to get there before they close at 8:00.

 

[Strange Famous]

So the FTC is going to get paid and not the customers that were effected?

 

[ktuck]

So the FTC is going to get paid and not the customers that were effected?

Where'd you get that idea?

From the Washington Post article: "She said that the FTC was seeking financial damages that could result in money being repaid to AT&T customers affected by the company’s policy of throttling. "

 

[ChrisTX]

I just ordered an iPhone 6 Plus and I was VERY excited to see that Unlimited Data was still an option for me at checkout. However I sort of hate having limited data on my other line though.

 

[sundragon]

This is the second time I've provided the source of the 44% figure.

You said that AT&T told you that switching from an unlimited plan to 6GB wouldn't save you money. Last month, we switched from the Unlimited Plan to a shared data plan and saved $70/mo in doing so. A few days ago, I found out that AT&T was doubling the data for people who requested it. (I think the program is over now - see slickdeals.net) So, I requested it and they did.

This is the gist of the matter:
“AT&T promised its customers ‘unlimited’ data...” said Ramirez in a statement. “The issue here is simple: ‘unlimited’ means unlimited.”

Sorry, there's more I'd like to say but I've got to go work out. I have a lifetime membership at 24 Hour Fitness and want to get there before they close at 8:00.

Sorry, I didn't see the first time you provided your source. Thanks!

 

[ktuck]

I just ordered an iPhone 6 Plus and I was VERY excited to see that Unlimited Data was still an option for me at checkout. ...

Chris, having gone through the same decision, I'm genuinely curious as to what you perceive as the advantage of Unlimited Data.

(For the price of our unlimited plan, we could have gone straight to 30GB's of high-speed data at roughly the same price. But, with only one exception, we never used more than 1-2GB's, so I opted to save $70 per month.)

I'm not picking on you, but after shopping and researching and analyzing, I just couldn't find a single good reason why anyone would be ahead by having the Unlimited Plan and I'm wondering if there's something I missed. Or, if 44% of AT&T's customers simply haven't looked closely at their options.

 

[ChrisTX]

Chris, having gone through the same decision, I'm genuinely curious as to what you perceive as the advantage of Unlimited Data.

(For the price of our unlimited plan, we could have gone straight to 30GB's of high-speed data at roughly the same price. But, with only one exception, we never used more than 1-2GB's, so I opted to save $70 per month.)

I'm not picking on you, but after shopping and researching and analyzing, I just couldn't find a single good reason why anyone would be ahead by having the Unlimited Plan and I'm wondering if there's something I missed. Or, if 44% of AT&T's customers simply haven't looked closely at their options.

You haven't missed anything here, but it's all about principal for me. I use more than 1-2 GB of data per month between music streaming, videos, web browsing etc...and don't want to lose out on that. Perhaps there are cheaper options worth evaluating in the future but if I don't have to lose my unlimited data plan then why not?

 

[ktuck]

... Perhaps there are cheaper options worth evaluating in the future but if I don't have to lose my unlimited data plan then why not?

We think alike, and that's why, after many years of making sure that we didn't lose Unlimited Data, it was hard for me to give up.

But everyone I talked to AT&T said there was absolutely no chance of the Unlimited Plan changing to include a higher throttling cap. So, if it's not useful to me for more than 3-5GB a month, why pay the same as a 30GB plan?

Now we're on a 4GB plan and paying $70 less per month (including the cost of my wife's new iPhone). I figured that when we're traveling and need lots of data, that $70 could easily pay for a Verizon or T-Mobile hotspot and then we'd not only have plenty of data, we'd have coverage in more areas. And I wouldn't be paying year-round for the data we only need for a few weeks.

(When shopping with AT&T, I asked if we could go back and forth between plans as our data needs changed. They said sure, you can go to a higher plan for a coupe of weeks with a prorated charge, and then drop back down again to a less expensive plan. But, that technique doesn't work if you take advantage of their double-data promotion. Kind of like the Unlimited Plan, if you let it go, you've lost it.)

 

[roadbloc]

Good. where I'm at, unlimited means unlimited. Advertising something as unlimited and then adding a limit to it is just plain evil.

 

[ktuck]

Good. where I'm at...

It's all the fault of your British forefathers, who when coming up with the English language, should have had the foresight to define the word "unlimited" to include an asterisk, linked to "*Subject to terms and conditions, and modifications at any time as deemed necessary by the provider."

Synonyms
1. unconstrained, unrestrained, unfettered.

 

[ChrisTX]

We think alike, and that's why, after many years of making sure that we didn't lose Unlimited Data, it was hard for me to give up.

But everyone I talked to AT&T said there was absolutely no chance of the Unlimited Plan changing to include a higher throttling cap. So, if it's not useful to me for more than 3-5GB a month, why pay the same as a 30GB plan?

Now we're on a 4GB plan and paying $70 less per month (including the cost of my wife's new iPhone). I figured that when we're traveling and need lots of data, that $70 could easily pay for a Verizon or T-Mobile hotspot and then we'd not only have plenty of data, we'd have coverage in more areas. And I wouldn't be paying year-round for the data we only need for a few weeks.

(When shopping with AT&T, I asked if we could go back and forth between plans as our data needs changed. They said sure, you can go to a higher plan for a coupe of weeks with a prorated charge, and then drop back down again to a less expensive plan. But, that technique doesn't work if you take advantage of their double-data promotion. Kind of like the Unlimited Plan, if you let it go, you've lost it.)

Great train of thought here. I need to look and see how much data I'm really using every month. I honestly haven't checked in a while. I signed a new contract today when I purchased my 6 plus. If it makes financial sense to me, then I may change to a lower data plan. We'll have to look and see what happens. Thanks for the heads up.

 

[Bryan Bowler]

Now we're on a 4GB plan and paying $70 less per month (including the cost of my wife's new iPhone). I figured that when we're traveling and need lots of data, that $70 could easily pay for a Verizon or T-Mobile hotspot and then we'd not only have plenty of data, we'd have coverage in more areas. And I wouldn't be paying year-round for the data we only need for a few weeks.

ktuck,

You've brought up some valid points that make a lot of sense. Honestly, taking a look back, your advice is spot-on. I'm pretty sure I would be better off paying for a tiered-plan and then simply paying extra once a year if I go over my data limit. I know I would save a lot of money in the long run.

In answer to your earlier question of wanting to better understand why so many people are holding on to their unlimited data plan, I suspect that it's based off the perceived notion that they may need it one day. For example, for years I've been saying "what if one day tethering is allowed on my plan...then I could tester to my phone when I'm on the road." Of course, the likelihood is unrealistic, but things like this are probably what drives the majority of folks to keep their unlimited plan when it is offered to them. I think it's in people's nature to want to hold onto something that is of perceived value, even when in fact, it may not be valuable at all.

At any rate, I think next week I'll sit down and take a hard look at the data usage for the two iPhones on my account and do some number crunching to see what may or may not be best for my needs.

Thanks for the reality check,
Bryan

 

[ktuck]

... I suspect that it's based off the perceived notion that they may need it one day. ...

Exactly. For all those years, I'd be listening to friends say things like I ought to get on a pre-paid plan, or T-Mobile is offering better rates, and I'd always think, someday I'll come out ahead because I'll be the one with unlimited data.

A few years ago, we were camping and I was excited to learn that AT&T was allowing phones to be used as hotspots. When I found out that the Unlimited Plan didn't allow that, I was irate. Finally, I had found a way to take advantage of unlimited data and they data-blocked me!

But, I still knew unlimited data would be handy someday, so I continued to renew. Then a couple of months ago, first time I've ever been in a position to use lots of data, I got a text warning me that I was approaching my limit.

I had never needed "unlimited" data until then and was really pissed that I had been sticking with AT&T and paying extra just to hang on to that precious Unlimited Data plan, only to find out that "one day" wasn't ever going to come.

 

[ynotrhyme]

Y'all think they'll remove the throttle?

 

[ktuck]

Y'all think they'll remove the throttle?

I'd feel betrayed (again) if they do. Before letting go of our Unlimited Plans, I talked to everyone I could get in front of (online, by, phone, and in person) and they unanimously said that there was absolutely no chance the throttle would be removed or the level raised.

My complaint isn't that they instituted a cap. It's obvious that they couldn't allow people to (for example) be providing free hotspots for their entire neighborhood.

My complaint is where they drew the line. They could have been more transparent and switched everyone to shared data plans, with some concessions given to those who paid to keep their Unlimited Plans intact through the years.

Looking over my options, I called retentions and explained that, since I had been paying the price of a 30GB plan but receiving only a 5GB plan, it would be fair for them to give me 30GB plan for the price of a 5GB plan. Just to offset the higher amount I'd been paying all those years.

The highest-level rep I spoke with was a nice guy, sympathetic and understanding, and probably would have given me what I wanted, if it was possible. (And it took me a long time to become convinced that there really was nothing he could do!)

The kicker was that giving me a 30GB plan would have cost them nothing. We are rarely out of wifi, so we never seem to use more than 1-2GB per month.

The FTC lawsuit is likely to bring the AT&T's good guys (there has to be a bunch) to the top. I'm hoping for an amicable, reasonable settlement.

 

[rkuo]

I'd feel betrayed (again) if they do. Before letting go of our Unlimited Plans, I talked to everyone I could get in front of (online, by, phone, and in person) and they unanimously said that there was absolutely no chance the throttle would be removed or the level raised.

My complaint isn't that they instituted a cap. It's obvious that they couldn't allow people to (for example) be providing free hotspots for their entire neighborhood.

My complaint is where they drew the line. They could have been more transparent and switched everyone to shared data plans, with some concessions given to those who paid to keep their Unlimited Plans intact through the years.

Looking over my options, I called retentions and explained that, since I had been paying the price of a 30GB plan but receiving only a 5GB plan, it would be fair for them to give me 30GB plan for the price of a 5GB plan. Just to offset the higher amount I'd been paying all those years.

The highest-level rep I spoke with was a nice guy, sympathetic and understanding, and probably would have given me what I wanted, if it was possible. (And it took me a long time to become convinced that there really was nothing he could do!)

The kicker was that giving me a 30GB plan would have cost them nothing. We are rarely out of wifi, so we never seem to use more than 1-2GB per month.

The FTC lawsuit is likely to bring the AT&T's good guys (there has to be a bunch) to the top. I'm hoping for an amicable, reasonable settlement.

AT&T clearly still makes money on the unlimited plans because people don't actually use much data on average. But then they tried to have their cake and eat it too by throttling people who went over 5GB. The honest and correct action would have been to simply end the service. But they didn't want to do that because of the churn it would cause. Just not the right thing to do. I hope you get back something for the months of service you paid for and didn't actually get.