AT&T Fined $60 Million by the FTC for Throttling Customers’ Unlimited Phone Plans

AT&T has entered an agreement to pay the Federal Trade Commission a $60 million settlement over allegations of it throttling unlimited plans…

Telecommunications company AT&T has agreed to pay the FTC a $60 million settlement. The arrangement dates back to a case in 2014, in which the federal agency accused the carrier of misleading customers, charging them for “unlimited” data plans but still throttling their speeds.

AT&T Agrees to Pay the FTC $60 Million Settlement for Throttling Unlimited Phone Plans

The AT&T-FTC settlement allows customers who signed up for an unlimited plan prior to 2011 to receive “partial refunds.”

Also, AT&T must now disclose whenever it plans to include any sort of restrictions. And, said disclosures must be prominent, not buried in fine print or concealed behind hyperlinks.

Andrew Smith, the director of the FTC’s Bureau of Consumer Protection, said in a prepared statement:

“AT&T promised unlimited data — without qualification — and failed to deliver on that promise. While it seems obvious, it bears repeating that Internet providers must tell people about any restrictions on the speed or amount of data promised.”

This isn’t the only time AT&T and the feds have crossed paths over slowing down customers’ speeds. In 2015, the FCC fined the company $100 million for throttling customers without notifying them beforehand.

Owen E. Richason IV

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