AT&T found guilty of data throttling, lack of transparency, issued $100 million fine

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Date: Thursday, June 18th, 2015, 08:58
Category: Legal, News, wireless


Maybe this is the slap on the wrist that AT&T needs to deliver what it offers.

Following up on thousands of complaints from customers who noticed lower data speeds on their grandfathered data plan, the FCC has issued wireless carrier AT&T a US$100 million fine for throttling data speeds. AT&T was found to have violated the Commission’s Open Internet Transparency Rule with the two violations as follows:

(1) using the misleading and inaccurate term “unlimited” to label a data plan that was in fact subject to prolonged speed reductions after a customer used a set amount of data; and
(2) failing to disclose the express speed reductions that it applied to “unlimited” data plan customers once they hit a specified data threshold.

The FCC also found that while AT&T did provide some warning to customers, it was not sufficient enough to fulfill the requirements of the transparency rule. As an additional part of the ruling, AT&T must notify each customer with an unlimited plan of the violation, and include a revised disclosure statement. In the revised disclosure the company must include the maximum speeds to which it limits data plans, and AT&T must allow any customers with the unlimited data plan who wish to cancel their plan to do so without charge.

Stay tuned for additional details as they become available.

Via iMore

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