FTC sues AT&T for throttling unlimited data plans
According to the Washington Post, the Federal Trade Commission is suing wireless carrier AT&T for throttling data plans that were advertised as being unlimited. AT&T instituted throttling in 2011, targeting unlimited users who used too much data.
The FTC reportedly received thousands of complaints about throttling, which reduced the speed of the customer's cellular data connection by as much as 90 percent. AT&T allegedly used the practice 25 million times against more than 3.5 million customers who, on average, experienced slower internet speeds twelve days each month.
FTC Chairwoman Edith Ramirez led the investigation that found AT&T was aware of consumer dissatisfaction with the practice and chose to ignore it, advising the marketing team that "saying less is more" is crucial when selling wireless plans.
"AT&T promised its customers 'unlimited' data, and in many instances, it has failed to deliver on that promise," said Ramirez in a statement. "The issue here is simple: 'unlimited' means unlimited."
AT&T responded to the suit, calling the allegations "baseless" and claiming the government was overstepping its bounds by trying to change an industry accepted network management technique.
"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," said AT&T senior executive vice president Wayne Watts, "and does it in a way that is fully transparent and consistent with the law and our contracts."
This throttling issue isn't AT&T's first wrangling with the FTC. The wireless carrier recently reached a $105 million settlement with the government agency over allegations it was stuffing customer bills with fake third-party charges. These bogus fees reportedly netted AT&T hundreds of million of dollars over a five-year period.
