Record setting fine
AT&T faces a $100 million fine that the Federal Communications Commission plans to impose on the wireless carrier for "misleading its customers about unlimited mobile data plans." In short, AT&T is in hot water for throttling speeds to customers of its unlimited data plans without adequately notifying them that they could receive slower connections.
While AT&T no longer offers unlimited data plans to new customers, the FCC says AT&T sold millions of unlimited plans to customers who previously signed up and chose to renew.
“Consumers deserve to get what they pay for,” said FCC Chairman Tom Wheeler. “Broadband providers must be upfront and transparent about the services they provide. The FCC will not stand idly by while consumers are deceived by misleading marketing materials and insufficient disclosure.”
AT&T first began offering unlimited data plans in 2007. Four years later, the wireless carrier implemented a "Maximum Bit Rate" policy that put a cap on the amount of data an unlimited data customer could consume. Anyone who went over the data cap suffered deliberately slower speeds.
The FCC said it received thousands of complaints about the policy since 2011 and subsequently determined that AT&T violated the 2010 Open Internet Transparency Rule by falsely labeling the plans as "unlimited."
“Unlimited means unlimited,” said FCC Enforcement Bureau Chief Travis LeBlanc. “As today’s action demonstrates, the Commission is committed to holding accountable those broadband providers who fail to be fully transparent about data limits.”
Those who saw their speed reduced by AT&T were slowed for an average of 12 days per billing cycle, the FCC said.
AT&T denies any wrongdoing and plans to fight the hefty fine.
"We will vigorously dispute the FCC's assertions. The FCC has specifically identified this practice as a legitimate and reasonable way to manage network resources for the benefit of all customers, and has known for years that all of the major carriers use it," AT&T said in a statement. "We have been fully transparent with our customers, providing notice in multiple ways and going well beyond the FCC's disclosure requirements."
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