A recent court filing reveals AT&T has reached an agreement with the Federal Trade Commission over the agency’s lawsuit regarding data throttling…
Telecom AT&T has reached a settlement over a FTC lawsuit alleging deceptive data throttling practices. A recently published federal court ruling shows the federal agency and corporation entered into an agreement on August 2nd, requesting a 90-day stay for the FTC to review and vote on the settlement.
AT&T Settles FTC Lawsuit over Alleged Data Throttling
The lawsuit alleged defendant AT&T failed to adequately inform customers of its data throttling practices for unlimited subscribers. (Carriers generally have cut-off points for high-speed data use. After customers reach the threshold, the company slows or throttles the speed.)
The case almost didn’t move forward initially. About three years ago, in 2016, an appeals court effectively threw-out the lawsuit. It essentially agreed AT&T’s common carrier status was grounds for an exemption of its data throttling practices.
At present, details of the tentative settlement have not been made public. Therefore, it’s unclear what AT&T will concede and/or pay.
Although, it might provide more incentive for wireless carriers to change their previous and current data throttling policies and disclosure practices.