AT&T Fined $100 Million by FCC for Unlimited Data Throttling Practices

ATT LogoThe United States Federal Communications Commission today announced plans to fine AT&T $100 million for misleading customers about its unlimited mobile data plans. Following an investigation, the FCC is accusing AT&T of severely slowing down the data speeds of customers with unlimited data plans and failing to adequately warn them about the slower data speeds.

In 2011, AT&T implemented a "Maximum Bit Rate" policy and capped the maximum data speeds for unlimited customers after they used a set amount of data within a billing cycle. The capped speeds were much slower than the normal network speeds AT&T advertised and significantly impaired the ability of AT&T customers to access the Internet or use data applications for the remainder of the billing cycle.

The FCC says AT&T violated the 2010 Open Internet Transparency Rule by falsely calling its plans "unlimited" and by not informing customers of the maximum speed they would receive under AT&T's Maximum Bit Rate policy. Millions of customers suffered slow data speeds, with some seeing speed reductions for 12 days per month on average.

On the decision, FCC chairman Tom Wheeler had this to say: "Customers deserve to get what they pay for. 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 ceased offering unlimited data plans years ago, but it continues to have customers with grandfathered unlimited data plans. AT&T previously throttled all of those customers after they exceeded 5GB of LTE data, but in May, AT&T implemented a policy change that sees customers being throttled only when connected to a cell tower experiencing network congestion.

Along with facing a $100 million fine levied by the FCC, AT&T is also involved in an ongoing lawsuit with the Federal Trade Commission over the same issue.

Tags: FCC, FTC, AT&T

Top Rated Comments

TheBuffather Avatar
86 months ago
Fantastic. Best news I've heard all day. AT&T deserved it. That's like a restaurant watering down your soup because you came during all-you-can-eat soup hour.
Score: 31 Votes (Like | Disagree)
Dilster3k Avatar
86 months ago
GOOD. I'd argue that 100 million alone doesn't cut it.
Score: 22 Votes (Like | Disagree)
darnovo Avatar
86 months ago
But who gets that 100 million? Not the customers who were robbed of their data correct? Some suits get it?
Score: 16 Votes (Like | Disagree)
kcamfork Avatar
86 months ago
What I find annoying is, I fully accepted this years ago, and decided to just switch to a limited, family share plan, because I thought AT&T would continue this kind of garbage, or just do away with unlimited plans altogether. So because of their deceptive practices, I changed my plan. Can I go back to unlimited now? No. Ugh. Good. I'm glad they got fined $100 million. All of the telecoms are garbage.
Score: 14 Votes (Like | Disagree)
jwm Avatar
86 months ago
The fine should be much higher, like 1 billion dollar minimum.
Score: 13 Votes (Like | Disagree)
AbblePC Avatar
86 months ago
And the consumer is compensated in what way? I may have to Tweet ATT Support to inquire within.
Score: 11 Votes (Like | Disagree)

Popular Stories

maxresdefault

Review: M1 Max MacBook Pro After Three Months

Wednesday January 19, 2022 11:30 am PST by
It's now been a few months since the M1 Pro and M1 Max MacBook Pro models launched in October, and MacRumors video editor Dan Barbera has been using one of the new machines since they debuted. Over on the MacRumors YouTube channel, Dan has shared a three month review of his MacBook Pro to see how it has held up over time and how it's changed his workflow. Subscribe to the MacRumors YouTube ...
iphone se 2020 top

New iPhone SE Likely to Launch in April Based on Production Timeframe

Wednesday January 19, 2022 6:44 am PST by
Apple suppliers will begin producing display panels for the third-generation iPhone SE this month, with final assembly of the device likely to start in March, according to information shared by display industry consultant Ross Young. Based on this production timeframe, Young believes the third-generation iPhone SE is likely to launch in the second half of April, or perhaps in early May at...
AirPods 3 New Firmware Feature

Apple Updates AirPods 3 Firmware to Version 4C170

Tuesday January 18, 2022 11:46 am PST by
Apple today released a new 4C170 firmware update for the AirPods 3, an update from the prior 4C165 that was made available in December. Apple does not offer details on what's included in new firmware updates for the AirPods‌, so we don't know what improvements or bug fixes the new firmware brings. There is no standard way to upgrade the ‌AirPods‌‌ software, but firmware is...
iPad Air Feature 2 green

New Apple Products Filed in Regulatory Database, Likely Including New iPhone SE and iPad Air

Tuesday January 18, 2022 6:11 am PST by
Apple today filed unreleased iPhone and iPad models in the Eurasian Economic Commission database, as spotted by French blog Consomac. The filings likely represent the rumored third-generation iPhone SE, fifth-generation iPad Air, and potentially more. The unreleased iPhone models have the identifiers A2595, A2783, and A2784, while the unreleased iPad models have the identifiers A2588, A2589, ...
iphone 5g mmwave

U.S. Airlines Warn of 'Catastrophic' Crisis With Impending 5G Rollout, AT&T and Verizon Agree to Delay Around Airports

Tuesday January 18, 2022 10:35 am PST by
Verizon and AT&T's upcoming rollout of new C-Band 5G technology could cause chaos and lead to widespread delays of passenger and cargo flights, major U.S. airlines said on Monday in a letter sent to the White House National Economic Council, the FAA, and the FCC (via Reuters). "Unless our major hubs are cleared to fly, the vast majority of the traveling and shipping public will essentially...
microsoft office icons

Microsoft Releases Office for Mac Update With Full Apple Silicon Support in Excel

Tuesday January 18, 2022 4:15 am PST by
Microsoft has released a new version of its Office for Mac productivity suite that includes an updated Excel app with 100% native support for Apple silicon machines. According to the release notes accompanying version 16.57, Excel will now run natively on Macs powered by Apple's M1-series processors without having to use the Rosetta 2 translation layer, which means anyone using a Mac with an ...
appleeducation

Apple's US Education Store Now Requires Institution Verification to Buy Discounted Products

Wednesday January 19, 2022 2:22 am PST by
Apple is now requiring that customers in the United States verify that they're active students, teachers, or staff members at an educational institution in order to access education discounts on products. Previously, little verification was needed for customers to purchase products through Apple's education store in the United States. Apple's education stores offer models of the iPad and Mac ...
iPhone 14 Mock pill and hole thumb

ProMotion Now Expected to Remain Exclusive to iPhone 14 Pro Models, Not Expand to Entire Lineup

Sunday January 16, 2022 8:56 am PST by
Continuing the tradition set with the iPhone 13 Pro, only the highest-end iPhone 14 models will feature Apple's ProMotion display technology, according to a respected display analyst. Ross Young, who on multiple occasions has detailed accurate information about Apple's future products, said in a tweet that ProMotion will not be expanded to the entire iPhone 14 lineup and will remain...
Beyond iPhone 13 Better Blue Face ID

Rumored iPhone 14 Pro Feature Delayed Until Next Year

Wednesday January 19, 2022 3:00 am PST by
Apple's long-rumored under-display Face ID technology will not be coming to the iPhone 14 Pro, according to recent reports. Based on the latest rumors, it now looks unlikely that the 6.1-inch iPhone 14 Pro and 6.7-inch iPhone 14 Pro Max will feature Face ID technology under the display as several reports claimed over the past year. Display industry consultant Ross Young, who often reveals ...