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
116 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
116 months ago
GOOD. I'd argue that 100 million alone doesn't cut it.
Score: 22 Votes (Like | Disagree)
darnovo Avatar
116 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
116 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
116 months ago
The fine should be much higher, like 1 billion dollar minimum.
Score: 13 Votes (Like | Disagree)
AbblePC Avatar
116 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

iOS 17

Troubling iOS 17.5 Bug Reportedly Resurfacing Old Deleted Photos

Wednesday May 15, 2024 5:29 am PDT by
There are concerning reports on Reddit that Apple's latest iOS 17.5 update has introduced a bug that causes old photos that were deleted – in some cases years ago – to reappear in users' photo libraries. After updating their iPhone, one user said they were shocked to find old NSFW photos that they deleted in 2021 suddenly showing up in photos marked as recently uploaded to iCloud. Other...
General Apps Messages

iMessage Down for Some Users [Update: Service Restored]

Thursday May 16, 2024 3:00 pm PDT by
The iMessage service that Apple users to send messages to one another appears to be down for some users, and messages are failing to go out or are taking an extra long time to send. There are numerous reports about the issue on social networks and a spike of outage reports on Down Detector, but Apple's System Status page is not yet reporting an outage. Update: Apple's status page says...
CarPlay Sound Recognition

Apple Previews Three New CarPlay Features Coming With iOS 18

Wednesday May 15, 2024 9:18 am PDT by
Apple today previewed new accessibility features coming with iOS 18 later this year, and this includes some new options for CarPlay. Apple highlighted three new features coming to CarPlay: Voice Control: This feature will allow users to navigate CarPlay and control apps with just their voice. Color Filters: This feature will make the CarPlay interface visually easier to use for...
maxresdefault

Hands-On With the New M4 OLED iPad Pro

Wednesday May 15, 2024 10:40 am PDT by
Today is the official launch day of the new iPad Pro models, and these updated tablets mark the biggest feature and design refresh that we've seen for the iPad Pro in several years. We picked up one of the new 13-inch models to check out everything new. Subscribe to the MacRumors YouTube channel for more videos. When it comes to design, Apple is still offering 11-inch and 13-inch size options ...
iphone 15 pro max vs iphone 16 pro max

iPhone 16 Pro Max Looks This Much Bigger Beside iPhone 15 Pro Max

Thursday May 16, 2024 4:51 am PDT by
This year's upcoming iPhone 16 Pro Max is expected to get a boost in overall size from 6.7-inches to 6.9-inches, and a new image gives us a good idea of how the current iPhone 15 Pro Max compares to what could be Apple's largest ever iPhone. The image above, posted on X by ZONEofTECH, shows a dummy model representing the ‌iPhone 16 Pro‌ Max alongside an actual iPhone 15 Pro Max. Dummy...
Delta Hands On Feature

iPhone Emulators on the App Store: Game Boy, N64, PS1, PSP, and More

Thursday May 16, 2024 12:45 pm PDT by
In April, Apple updated its guidelines to allow retro game emulators on the App Store, and several popular emulators have already been released. The emulators released so far allow iPhone users to play games released for older consoles from Nintendo, Sony, SEGA, Atari, and others. A list of some popular emulators available on the App Store so far follows. Released Delta Delta is...