FTC Sues AT&T For Throttling Data Speeds For Unlimited Data Plan Customers

FTC Sues AT&T For Throttling Data Speeds For Unlimited Data Plan Customers(Ping! Zine Web Tech Magazine) – AT&T is once again being sued for its mobile practices, this time for allegedly throttling Internet speeds for users on unlimited data plans.

The FTC said on Tuesday that the company reduced data speeds for nearly 90 percent of customers, failing to inform customers that once they used a set amount of data each billing cycle, their data speeds would be greatly reduced.

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

According to the complaint, the mobile giant first began throttling speeds in 2011 when customers used 2 gigabytes of data each month, resulting in data speed reductions of 80 to 90 percent. The FTC said at least 3.5 million customers have been throttles 25 million times.

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.”