AT&T will pay $60 million to resolve U.S. allegations it misled millions of smar...
WASHINGTON - AT&T will pay $60 million to resolve U.S. allegations it misled millions of smartphone customers by charging them for “unlimited” data plans that reduced data speeds if they used too much, the Federal Trade Commission said on Tuesday.
As part of the settlement of the 2014 complaint, AT&T is also prohibited from making any representation about the speed or amount of its mobile data without also disclosing any material restrictions on the data.“Even though it has been years since we applied this network management tool in the way described by the FTC, we believe this is in the best interests of consumers,” AT&T said in an emailed statement.
The FTC alleged that AT&T would begin to slow “unlimited” customers’ data after they used as little as two gigabytes of data in a month. Netflix says that watching its shows uses about 1 gigabyte per hour of standard definition video. The $60 million will be deposited into a fund to provide partial refunds to both current and former customers who had signed up for unlimited plans prior to 2011 but had their data speeds reduced, or “throttled” by AT&T when their usage went past a certain threshold.
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