AT&T Agrees to $60 Million Settlement Over Deceptive Unlimited Data Claims
AT&T pays $60 million to the FTC after falsely advertising unlimited data plans while secretly throttling speeds for millions of customers.
AT&T agrees to a $60 million settlement with the FTC over a deceptive bait-and-switch scam involving fake unlimited data plans. The telecom giant faces penalties after falsely advertising unlimited data while severely throttling speeds for customers who exceeded hidden data caps. Approximately 3.5 million affected customers receive partial refunds as a result of this long-running legal battle.
The FTC files the initial complaint nearly five years ago after AT&T alters its truly unlimited plans in 2011 by slowing data speeds to a mere fraction of normal speeds. Instead of admitting fault, AT&T attempts to dismiss the case by arguing that net neutrality rules shift regulatory authority from the FTC to the FCC. A federal court rejects this legal loophole last year, allowing the FTC to proceed with its lawsuit unimpeded.
FTC Chairman Rohit Chopra criticizes AT&T for prioritizing profits over customers, noting the company possesses the financial resources to make proper infrastructure investments instead of throttling users. Although $60 million represents a small financial hit for a massive corporation like AT&T, the settlement serves as a warning to telecom executives who exploit their market power to ignore contractual obligations.