AT&T fined $100M for selling 'unlimited' data, then slowing Internet speed to manage network
Source: strib
AT&T Mobility LLC has been hit with a $100 million fine for offering consumers "unlimited" data, but then slowing their Internet speeds after they hit a certain amount.
The Federal Communications Commission said Wednesday that the company misled consumers into buying plans they believed would give them unlimited ability to send and receive data, including Web browsing, GPS navigation and streaming videos. But the FCC said that once the consumer receached a certain level, that data would be slowed down significantly, at speeds lower than advertised.
AT&T said it will "vigorously dispute" the allegations.
"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," the company said in a statement released to reporters. "We have been fully transparent with our customers, providing notice in multiple ways and going well beyond the FCC's disclosure requirements."
The hefty fine by the FCC comes on the heels of a federal lawsuit filed against the company last fall. The Federal Trade Commission, which enforces rules against deceptive advertising, said it wants to refund customers who were offered the unlimited data packages, only to be given slower data speeds than advertised. That lawsuit is still working its way through a federal court in California.
Read more: http://www.startribune.com/at-t-hit-with-100m-fine-for-its-unlimited-data-plans/307909071/
lark
(23,199 posts)It's already been secretly restricting access and wants to be able to do it in the light of day.
project_bluebook
(411 posts)lets break up these monopolies, open the cable to my house for all competitors like they do overseas. Prices would drop, quality of service would go up.
JDPriestly
(57,936 posts)onehandle
(51,122 posts)I'll sign up.
FlatBaroque
(3,160 posts)10,000,000 ATT customers complained of a new, unexplained $10 fee.
PADemD
(4,482 posts)I didn't get my bill yet this month. I'll be looking for that $10 fee.
brooklynite
(95,010 posts)...to T-Mobile. I now pay less for calls, texts, unlimited 4g and tethering.
bigbrother05
(5,995 posts)Pay for 1G at high speed per month, then speed drops after that, but no extra costs for extra data. Don't have to pay for any extra charges, but don't use a lot on my phone plan each month either.
erronis
(15,470 posts)brooklynite
(95,010 posts)I'm on the $70 plan. All d/l is 4g
F4lconF16
(3,747 posts)But they'll still try to scam you. I unfortunately fell for their insurance scam--they strongly misled me when they sold it to me. I asked a lot of questions about it, read all the paperwork they showed me in the store, and today discovered there's a $175 deductible they never bothered to mention. Sure, they sent that information to me with a mass of other paperwork after I had already purchased it, but that's just straight up deceptive. And now I have no phone, because I can't afford to move, eat, and repair my phone all at once.
We need to break up the monopolies. Switching won't solve much, unfortunately.
KeepItReal
(7,769 posts)I got the original iPhone on day 1 with an unlimited data plan.
A couple of years ago (and multiple ATT iPhone versions later) my data speed slows to barely faster than dial-up.
ATT claimed I was using too much data for my area. I was using an original, unhacked iPhone and apps acquired from the Apple store.
They made up a 3 gigabyte threshold all of a sudden and would slow me down with only a day to two left in my billing cycle.
They wanted me to purchase a new data plan for more money.
I said F That and went to TMO.
cstanleytech
(26,361 posts)they knew beforehand that any "fine" by the FCC for such practices would be a joke which as we have seen it was.
Lochloosa
(16,084 posts)Some choice....
randome
(34,845 posts)Classic misdirection.
[hr][font color="blue"][center]Aspire to inspire.[/center][/font][hr]
Aerows
(39,961 posts)yuiyoshida
(41,872 posts)down to their customers, which means my phone bill will probably go up...isn't that how corporations play that game of monopoly now?
OffWithTheirHeads
(10,337 posts)and, as usual, the costomers just get fucked.
F4lconF16
(3,747 posts)It's how it works these days. Or, rather, since always. Funny how capitalism tends to do that. When you put growth and profit at the core of a system, it doesn't work out well for the little people.
jamzrockz
(1,333 posts)The feds get the money not the customers who were hurt by the policy. We see this with fines for banks that screwed home owners, customers who were charged excessive fees.
The saddest part of it all is that the customers who were supposed to benefit from fines like this are the ones who will pay for the fines at the end of the day via price hikes.
swwallace81
(47 posts)I went from Verizon to Cricket. 4 smart phones for $100/month no ups no extras. Each phone gets 2.5 gigs of 4g, then drops to 3g if you go over. Saved $120.00/month and they use the AT&T network.
kenfrequed
(7,865 posts)A lot of these carriers have been doing stuff like this for awhile.
With Sprint I have noticed that there are "certain neighborhoods" that appear to have coverage at the 4g level but that the download rates instantly drop to paralysis levels.
BumRushDaShow
(130,043 posts)Rosa Luxemburg
(28,627 posts)catrose
(5,079 posts)RobinA
(9,909 posts)does anyone know if they've stopped doing this? I got warned the same month I got a little Bluetooth speaker and started streaming satellite radio at work. I loved the music but didn't want the threatened slooooow Internet.
Blue_Tires
(55,445 posts)6chars
(3,967 posts)Good work, Johnson!