Header Ads

AT&T to pay USD 60 million amid bogus "unlimited" data plans

US-based telecommunications firm AT&T has to cough up a whopping USD 60 million to the government to settle a case regarding its misleading "unlimited" data plans. 
AT&T to pay USD 60 million amid bogus "unlimited" data plans
AT&T fined USD 60 million

Unlimited should mean unlimited, no capping

The Federal Trade Commission (FTC) revealed the order earlier this week, claiming the telco has been slowing down its internet service for heavy users despite its unlimited data marketing promotion. 

The multi-million fine would be used to partially refund those customers who signed up for unlimited data plans before 2011. 

Aside from the penalty, AT&T is also not allowed to launch offers without disclosing any restrictions of those plans.

For example, if an AT&T website advertises a data plan as unlimited, but AT&T may slow speeds after consumers reach a certain data cap, AT&T must prominently and clearly disclose those restrictions, FTC said. 

Former FTC Chairwoman Editch Ramirez said in 2014 AT&T failed to deliver its promise of unlimited data.

The issue here is simple: "unlimited" means unlimited, Ramirez stressed back then. 

Source: The Verge
Powered by Blogger.