Sci-tech

AT&T fined $60M for misleading with 'unlimited' plans

AT&T fined $60M for misleading with 'unlimited' plans”

The FTC says that the $60 million fine against AT&T will be placed into a fund and divvied out to both current and former customers affected by the misleading language. The case was over the company throttling internet speeds of customers paying for "unlimited" data plans.

According to the FTC, some customers saw throttling after just 2GB of data consumption. Current AT&T customers will automatically receive a credit to their bills; former customers will receive refund checks. A long legal battle ensued, but an appeals court judge sided with the FTC in 2018. However, the amount is about $40 million less than what the FTC had originally desired. The policy has affected 3.5 million consumers as of October 2014, the FTC said.

Chopra continued his trip down memory lane by recalling how AT&T started to get concerned in 2011 when it lost exclusivity on the iPhone and was concerned that Verizon was going to steal away its subscribers. But even then, many iPhone consumers were locked into AT&T contracts, thinking they would get unlimited data, when in reality the carrier was throttling their speeds, Chopra added. "Yet when dominant companies don't deliver on their end of the bargain, too often they can turn a profit, as their customers feel powerless to do anything about it". He also pointed out that AT&T, which had exclusivity on the Apple iPhone in the USA from 2007-2010, started offering an unlimited data plan for $30 per month in 2008 when the iPhone 3G was launched.

Under this new settlement, AT&T will no longer be able to make claims about the speed or amount of mobile data, including that it is "unlimited", without revealing relevant restrictions.

You can now find those disclosures on AT&T's latest unlimited data plans, which were introduced last week. The company is also barred from marketing plans off of their suggested speed or amount of data without disclosing any restrictions those plans may have. Your video streaming can also be capped to standard definition (480p).

"The AT&T throttling scandal is an important case study into how dominant firms operating without meaningful competition can easily renege on their contractual obligations and cheat consumers who have nearly no recourse", FTC Commissioner Rohit Chopra said in a statement Tuesday. Throttling was allegedly initiated after customers used as little as 2 gigabytes of data in a billing period, the FTC said in a press release today. "AT&T's massive scam is a reminder that we must focus on the practices of a business, rather than the size of a business", he added.



Like this

loading...
loading...

Latest


06 November 2019
Inside PJ Fleck's new deal - salary structure, buyouts, etc.
Fleck calls it "a tremendous honor to lead this team", and said the Gophers are building "a championship culture". In a press conference Tuesday announcing the extension, he said his family "absolutely loves" Minnesota.

06 November 2019
Kristen Stewart Reacts to Donald Trump's Tweet About Her & Robert Pattinson
I don't know when it's going to be". "People wanted me and Rob to be together so badly that our relationship was made into a product", she said at the time .

06 November 2019
Djokovic thrashes Shapovalov to win Paris Masters
It will also be a busy 2020, though, for Nadal , with the Tokyo Olympics wedged between Wimbledon and the US Open. And as a effect , if I manage to get the year-end number one, that would be, of course, fantastic".

06 November 2019
Michigan Checks In At No. 14 In First CFP Rankings
The first draft of the College Football Playoff rankings are in and Alabama's standing is relative to your perspective. Alabama took over as the new No. 1, but the Crimson Tide were eventually passed by the LSU Tigers.

06 November 2019
High Court: London police exceeded authority with 'Extinction' ban
In the meantime, according to Metropolitan police figures, more than 400 Extinction Rebellion activists were arrested . What does Extinction Rebellion want? Mr Ephgrave said: "I want to be clear - we would not and can not ban protest".

06 November 2019
Major League Baseball 2019 Gold Glove Awards: Mookie Betts, Nolan Arenado headline winners
Jackie Bradley Jr . was one of the three finalists for the AL center field Gold Glove, but he failed to win his second straight. A combination of the national fan vote and the SABR Defensive Index will determine the winners from each league.

06 November 2019
Icing (on cake): Maple Leafs respond to young fan’s birthday
A kid in Corner Brook, NL is set to host his party for his 11th birthday on Saturday and nobody comes. If you have a minute, please send him a birthday wish.

06 November 2019
Ukraine Envoy's Texts Show Drama Behind Trump's Pressure Campaign
Sondland had said he only talked broadly during that meeting about investigations by Ukraine. "I was very concerned". And six White House officials scheduled to give depositions on Monday and Tuesday have not shown up.

06 November 2019
Valve And Apple Reportedly Working On An AR Head-Mounted Display Device
As for Apple , they probably consider augmented reality is much broader than using technology exclusively for video games. Valve , a well-known game developer and publisher, will aid Apple with the AR headsets.

06 November 2019
Mario and Sonic Team Up For A Party Today
It also feels like a great feature for kids, which, if I'm being 100% honest, is the audience I feel this game is most aimed at. The sports title allows you to team up with Mario, Sonic , and other characters as you participate in various sporting events.