The FCC took action against AT&T for misleading consumers about its unlimited mobile data plans and throttling policies.
The agency says AT&T willfully and repeatedly violated its Open Internet Transparency Rule, which was put in place in 2010. Under the auspices of that rule, AT&T falsely labeled plans “unlimited” even though they had hidden data caps and then throttled customers who exceeded those caps.
The FCC believes AT&T’s Maximum Bit Rate policy, enacted in 2011, severely reduced the maximum data speeds of unlimited data plans without notifying its customers that they’d be hit with slower speeds. The FCC said it has received thousands of complaints from consumers since 2011, who claimed to feel misled by AT&T’s policies. Consumers also complained about being locked into multi-year contracts for unlimited data plans that weren’t actually unlimited.
“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.”
The FCC is seeking $100 million from AT&T.
“We will vigorously dispute the FCC’s assertions,” said AT&T. “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. We have been fully transparent with our customers, providing notice in multiple ways and going well beyond the FCC’s disclosure requirements.”
