Clauses in AT&T Contracts Have Always Provided for Limits on 'Unlimited' Data Plans

A number of customers have expressed outrage and disappointment at AT&T's various efforts at throttling users with older "unlimited" data plans. The most recent change slows unlimited data users to download speeds of 256 Kbps after using 3GB of data.

Several Twitter users felt that AT&T was violating their contract and wanted to cancel their contract or file a class action lawsuit against the company. Blogger Jeff Jarvis feels that throttling is "fraud", and tech writer Matt Buchanan had this to say:

I think it's fair to expect the contract you signed up for remains the contract you signed up for.

But is AT&T's throttling of unlimited data users a violation of its contract with users? TOSBack is a website that tracks changes to the terms of service of various services, including both Apple and AT&T.

The contract from June 26, 2007 -- just a few days before the original iPhone went on sale -- includes a number of stipulations governing exactly how and why the iPhone's unlimited data plan can be restricted, including banning some video downloading and streaming. Most importantly, for customers now experiencing throttling, is this passage:

AT&T reserves the right to (i) limit throughput or amount of data transferred, deny Service and/or terminate Service, without notice, to anyone it believes is using the Service in any manner prohibited above or whose usage adversely impacts its wireless network or service levels or hinders access to its wireless network.

attlogo375wide
Language similar to this continues in every draft of the contract through today's version. The current wireless customer agreement includes this language in section 6.2:

AT&T reserves the right to (i) deny, disconnect, modify and/or terminate Service, without notice, to anyone it believes is using the Service in any manner prohibited or whose usage adversely impacts its wireless network or service levels or hinders access to its wireless network.

AT&T believes that it is well within its rights to throttle users on unlimited data plans, even as a Californian iPhone user won an $850 small claims judgement against the company over throttling. AT&T has promised to appeal. A class action suit might be the normal evolution of such a complaint, but AT&T's subscriber contract prohibits class action or jury trials, leaving arbitration and small claims as options for unhappy customers.

Not everyone agrees that AT&T is misbehaving by throttling. SplatF's Dan Frommer opines that users are not acknowledging reality when they complain about AT&T terminating unlimited data plans.

Here’s the big picture bottom line: If you use a lot of data, you are clearly getting some sort of value out of it. Value isn’t free. The world’s finite resources simply aren’t trending toward free. That isn’t logical. I predict most of you will be spending significantly more per month for wireless data in 5 and 10 years than you do today. You’ll be getting faster and better service, and more value out of it, but it won’t be cheaper.

Please get over your emotional battle — and extinguish any legal threats, that’s silly — and join us in reality. If you use a lot of mobile data, be happy about it, and be happy paying for it. It’s worth it. And consider trying the add-on tethering plan for the iPhone, it can be useful if you carry a laptop or iPad.

AT&T's current data plans offer 300MB/month for $20, 3GB/month for $30, or 5GB/month for $50 (including tethering), with each additional 1GB costing users $10 on the higher allocation plans.

Popular Stories

streaming black friday 2025

Black Friday Streaming Deals Include Big Savings on Disney+, Hulu, Apple TV, and More

Monday November 24, 2025 8:03 am PST by
We've been focusing on deals on physical products over the past few weeks, but Black Friday is also a great time of year to purchase a streaming membership. Some of the biggest services have great discounts for new and select returning members this week, including Disney+, Hulu, Paramount+, Peacock, and more. Note: MacRumors is an affiliate partner with some of these vendors. When you click a...
iOS 26 on Three iPhones

iOS 27 Will Reportedly Have Two Key Upgrades

Sunday November 23, 2025 8:48 am PST by
iOS 27 will reportedly have two major elements: quality improvements and new AI features. In his Power On newsletter today, Bloomberg's Mark Gurman said that iOS 27 will be similar to Mac OS X Snow Leopard, in the sense that Apple is focused on improving "quality and underlying performance" over adding new features. Gurman said there is one exception to this rule, though, as he expects...
iOS 26

iOS 26.2 Adds These New Features to Your iPhone

Thursday November 20, 2025 10:50 am PST by
iOS 26.2 is currently in beta testing. The upcoming update includes a handful of new features and changes on the iPhone, including a new Liquid Glass slider for the Lock Screen's clock, offline lyrics for Apple Music, and more. In a recent press release, Apple confirmed that iOS 26.2 will be released to all users in December, but it did not provide a specific release date. Keep reading...
General Black Friday Deals 25 Red

Apple Black Friday Deals Available Now on AirPods, iPads, Accessories, and More

Friday November 21, 2025 8:48 am PST by
We're only a few days away from Black Friday, which will take place on Friday, November 28 in 2025. As always, this will be the best time of the year to shop for great deals, including popular Apple products like AirPods, iPad, Apple Watch, and more. In this article, the majority of the discounts will be found on Amazon. Note: MacRumors is an affiliate partner with some of these vendors. When...
maxresdefault

The MacRumors Show: iPhone 18 Pro Looks Like a Huge Upgrade

Friday November 21, 2025 9:10 am PST by
On this week's episode of The MacRumors Show, we talk through all of the new features and improvements expected to come to next year's iPhone 18 Pro and iPhone 18 Pro Max models. Subscribe to The MacRumors Show YouTube channel for more videos Apple's next-generation iPhones are less than ten months away and we already have a good idea about what to expect based on corroborated leaks, rumors,...
apple news banner

Apple News Loses CNN

Monday November 24, 2025 7:56 am PST by
American multinational news company CNN has abruptly pulled its content from Apple News, Semafor reports. CNN quietly removed its stories from Apple News over the weekend and there is no longer a feed from the network to subscribe to in the app. This effectively ends its distribution agreement with Apple while the two sides negotiate new terms. Discussions are apparently ongoing and CNN's...
amazon black friday

Amazon Kicks Off Black Friday Sale With Major Discounts on Apple Accessories, TVs, and More

Sunday November 23, 2025 7:12 am PST by
Black Friday deals have begun, and Amazon is one of the best places you can find steep discounts on numerous products this week. We've already collected all of the best Apple-related deals you'll find at Amazon (and other retailers) in our Apple Black Friday Deals post, so below you'll find other discounts on devices like Anker accessories, Beats headphones, video games, TVs, and more. Note:...
Apple Shopping Event 2025

Apple Announces 2025 Black Friday Event, Here's What You Can Get

Thursday November 20, 2025 6:28 am PST by
Apple's annual four-day Black Friday through Cyber Monday shopping event is returning on Friday, November 28 through Monday, December 1 in many countries, including the United States, Canada, Australia, New Zealand, France, Germany, Italy, Spain, the United Kingdom, Belgium, the Netherlands, Sweden, Thailand, and others. During the shopping event, customers can get an Apple gift card with...
Apple Foldable Thumb

Foldable iPhone to Debut These Three Breakthrough Features

Tuesday November 25, 2025 7:09 am PST by
Apple's first foldable iPhone is expected to launch alongside the iPhone 18 Pro models in fall 2026, and it's shaping up to include three standout features that could set it apart from the competition. The book-style foldable will reportedly feature an industry-first 24-megapixel under-display camera built into the inner display, according to a recent JP Morgan equity research report. That...

Top Rated Comments

Primejimbo Avatar
179 months ago
Who the hell still uses ATT?

It works where I need it too and Verizon doesn't, so why not? Why do people use Sprint, T-Mobile, Verizon and others? That was probably one of the stupidest comments I have ever read on here. :rolleyes:
Score: 32 Votes (Like | Disagree)
snowmoon Avatar
179 months ago
AT&T reserves the right to (i) limit throughput or amount of data transferred, deny Service and/or terminate Service, without notice, to anyone it believes is using the Service in any manner prohibited above or whose usage adversely impacts its wireless network or service levels or hinders access to its wireless network.
This does not deal with the situation at hand since they can't claim that 3G "negatively impacts wireless network or service levels" while turning around and selling 5G/month service to others.
Score: 29 Votes (Like | Disagree)
Peace Avatar
179 months ago
The United States is in dire need of upgraded broadband.
Score: 24 Votes (Like | Disagree)
FSMBP Avatar
179 months ago
Maybe they shouldn't have offered "Unlimited Data" when they didn't have the means to keep it up.

I know they're people who 'abuse' the network, but don't invite people when you don't have enough seats at the table.
Score: 20 Votes (Like | Disagree)
g-boac Avatar
179 months ago
It's clearly not keeping with the spirit or intent of an unlimited data plan to simply cap the data and the cost at the same as a paid data plan - by definition this is not "unlimited".

I understand that it's fair to reasonably draw the line at some point, but this can effectively be done on a case-by-case basis where someone is truly and egregiously exceeding the mean usage by several standard deviations.
Score: 16 Votes (Like | Disagree)
dcranston Avatar
179 months ago
I'm not that up in arms over the "unlimited" thing, although it does seem like a misnomer. I think the precedent which seems illegal is this part:

A class action suit might be the normal evolution of such a complaint, but AT&T's subscriber contract prohibits class action or jury trials, leaving arbitration and small claims as options for unhappy customers.

Having language that restricts how one is able to take a company to court seems...very much not okay.
Score: 15 Votes (Like | Disagree)