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

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


AT&T will pay $60 million to settle the government’s allegation that it misled customers of unlimited-data plans by slowing down service for heavy users The Federal Trade Commission said Tuesday that AT&T will automatically provide partial refunds to customers who signed up for unlimited wireless plans before 2011, which is when the company introduced its ‘throttling’ policy to slow down data after a certain point   The FTC sued AT&T in 2014 for not clearly letting customers know that if they used up a certain amount of data, AT&T would slow their speeds so much that web browsing was almost impossible  It said then that AT&T had throttled at least 3.5 million customers. AT&T was fined $60million on Tuesday for ‘fleecing’ customers by selling them purportedly unlimited plans then slowing down their data after a certain point  Until 2011, AT&T sold genuinely unlimited plans It then changed its policies to incorporate throttling, but the FTC said it did not adequately inform customers about the practice Above is a recent ad for the ‘unlimited’ service The agency says AT&T is required to say prominently if data speeds or amounts are restricted Today, AT&T’s website says it may slow speeds of unlimited plans after a certain amount of data is used RELATED ARTICLES Previous 1 Next Uber shares tumble 5% after posting $1.16BILLION losses, but Xiaomi unveils $400 smartphone with an unprecedented. Share this article Share It is not the first time the telecomms giant has been sued over allegedly misleading sales techniques  In 2010, the company was separately fined $100million by the Federal Communications Commission over similarly deceptive sales techniques  FTC Chairman Rohit Chopra said on Tuesday: ‘AT&T’s bait-and-switch scam is a good window into the many harms that result from dominant companies operating without the discipline of meaningful competition   The bottom line is that AT&T fleeced its customers to enrich its executives and its investors  FTC Chairman Rohit Chopra  ‘Their market power, financial resources, and one-sided information gives them license to ignore their own contractual obligations while aggressively enforcing every little clause in the fine print ‘Consumers can accept the bad deal, walk away, or fight it, but each choice carries a cost, with dominant firms prevailing almost every time ‘ Chopra added that the company ‘fleeced’ its customers to line executives’ pockets  ‘The bottom line is that AT&T fleeced its customers to enrich its executives and its investors,’ he said An AT&T spokesman told DailyMail.com on Tuesday: ‘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 ‘ 

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