AT&T Says FTC Lawsuit Is “Baseless,” Customers Were Informed Of Throttled Data Speeds

AT&T Says FTC Lawsuit Is "Baseless," Customers Were Informed Of Throttled Data Speeds(Ping! Zine Web Tech Magazine) – AT&T is facing another lawsuit, this time by the FTC for failing to properly disclose how they slowed down data speeds for unlimited data plan customers who reached certain amounts each month.

The agency stated earlier this week that AT&T reduced data speeds for around 90 percent of its unlimited data customers, noting that 3.5 million users have been throttled around 25 million times.

“AT&T promised its customers ‘unlimited’ data, and in many instances, it has failed to deliver on that promise,” saidFTC Chairwoman Edith Ramirez. “The issue here is simple: ‘unlimited’ means unlimited.”

The complaint states that the mobile giant started throttling speeds in 2011. When customers used 2 gigabytes of data each billing cycle, their data speeds were reduced around 80 to 90 percent.

However, AT&T responded to these reports by stating the allegations against them are “baseless” and that they notified customers of the throttling via bill notices and a national press release, noting that this has only affected 3% of customers.

“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.”