The Federal Trade Commission is finally going after AT&T for throttling customer’s data speeds, by filing an official complaint that the company has lowered speeds on LTE up to 95% on unlimited data plans.
FTC chairwoman Edith Ramirez expounded on the lawsuit today stating, “the issue is simple: Unlimited means unlimited.” The FTC also alleges that AT&T engaged in unfair or deceptive acts and practices that affected commerce. And they’ve got the numbers to back up their lawsuit, with claims that AT&T illegally capped users’ data speeds at 128 Kbps.
Here’s AT&T’s response to the lawsuit:
“The FTC’s allegations are baseless and have nothing to do with the substance of our network management program. It’s baffling as to why the FTC would choose to take this action against a company that, like all major wireless providers, manages its network resources to provide the best possible service to all customers, and does it in a way that is fully transparent and consistent with the law and our contracts.”
AT&T added that it’s been “completely transparent” with customers by informing unlimited data plan customers before the throttling program started. The company claims only 3% of its customers are affected, and that they send you a text before throttling.
However, the FTC says it’s received 119,000 complaints and is ready to fight AT&T’s baffled response. Research documents reveal that AT&T knew its data throttling program was viewed by customers as “clearly unfair,” but its marketing researchers advised the company to not “say too much” in marketing about the throttling program.
Source: FTC
Buster Hein is a freelance writer who lives in Phoenix, Arizona. Twitter: @bst3r.
13 responses to “FTC finally sues AT&T for throttling unlimited data plans”
AT&T lies. I’ve had my unlimited plan since the beginning and I’ve never had one text sent to me regarding my data being throttled. My data is usually throttled when I hit anywhere from 2.5-3 gig’s of data. Looking forward to seeing them punished.
i wonder what is in AT&T contract fine print. I’d be surprise if AT&T did not leave itself some wiggle room on exactly what ‘unlimited’ means.
same. have had data throttled multiple times on my unlimited account, never received a text or other notice.
I’ve had an iPhone for years, a 3GB plan for years and now share a 10GB plan with my wife. I’m not saying they didn’t warn you, they probably didn’t. I use my phone all day everyday (and night) and I never come close to 3, much less 5GB. Email checking every 30 minutes, Youtube, surfing, Apple Radio, During baseball season I listened to ball games using the MLB app. Educate me, how do you eat up all that data? Have a good one.
Sign Me Up! I’ve always felt slighted by the term “unlimited” data. The act of restricting the amount of data one receives should be an exact definition of “limiting” the data provided. It’s false advertising.
It will be a hollow victory for users if AT&T is fined. Any cost will just show up in their monthly statement.
Hopefully the victory is that we get back out actual unlimited data and they stop throttling.
I cancelled ATT after YEARS of being a loyal customer and had unlimited data. Switched to Verizon. I would like to throw my hat in the ring strongly criticizing ATT! Why is this now being brought to light all of a sudden? This happened to me 6-7 years ago.
I’m with Atkinst11… I’ve had unlimited since the first iPhone and I’ve NEVER received a text about throttling. However, on LTE, I hit 5GB before it slows down…but once it does…I’m lucky to get .75 Mbps.
Looking forward to truly unlimited data and this changing. However, if this happens, I’m confident that AT&T will go the Verizon route and no longer subsidize new phones on an unlimited plan. Want a new phone & keep unlimited??? Pay full price. Want a subsidy??? Use our “new & improved” plans that will give you less data for the same price.
They’ll get us one way or another.
If it came down to that option with AT&T, as long as my plan price decreased the amount of money that goes toward the phone subsidy (~$20/month) I’d be more than willing to pay full price upfront and have true unlimited data. Still a better deal, just as long as you can afford paying upfront for the phone.
I’m with all of you AT&T has throttled me for a while , there explanation is that ” I still have unlimited data I just don’t have the speed to get it to my device ”
Go figure !!!
I think it’s about time can’t wait to see what happens …
go FCC #longtimecoming !!
I’m honestly surprised its taken this long for the FCC to get involved in this situation. I have a grandfathered unlimited data AT&T plan, and while it hasn’t often affected me, the throttling hit me hard last month. As I approached 5GB, I did indeed receive a warning text from AT&T. After I passed 5GB, my LTE speeds of 50+mbps dropped to 1mbps if I was lucky. I could understand throttling down to maybe 10-15, not that it would be fair, but at least the data is still usable. At >1mbps, you’re basically trying to open sites on edge, which we all know is fruitless.
This is the best news I’ve ever seen. I applaud the FCC, and cross my fingers that I’ll have true unlimited (unthrottled) data once again.
After being with AT&T for 4 years with a grandfathered “unlimited” $85 data plan, it was their throttling crap that led me to finally jump ship to T-Mobile earlier in 2014. I’m glad that they’re getting nailed to the wall for this. I get unlimited data (up to 5GB LTE) with T-Mobile and 100 talk minutes for a measly 30-bucks a month.
AT&T owes me big time… those lying sacks of s__t were throttling me well before 3GB much of the time. I was fearful of losing my “unlimited” plan until I noticed that other companies (NOT AT&T and NOT Verizon) were giving much better deals.