The FTC Sues AT&T for Throttling 3.5 Million Unlimited Customers

Discussion in 'Android News' started by dgstorm, Oct 28, 2014.

  1. dgstorm

    dgstorm Editor in Chief
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    It seems the United States Federal Trade Commission takes a stand stating "‘unlimited’ means unlimited." They finally decided to put their foot down on some of the sneaky ways that US carriers have been hampering Unlimited Data customers. FTC Chairwoman Edith Ramirez is accusing AT&T of deceptive advertising and violation of the FTC Act because they throttled 3.5 Million customers who signed up for "unlimited plans."

    In a press statement, Ramirez specifically said,

    The main compliant is that AT&T' failed to inform customers that their "unlimited data" could be "throttled." A few customers even had their data speeds cut by up to 90 percent. Here's another quote with more of the details,

    What's interesting about this case is what sort of precedent it might set. The other carriers could be just as culpable as AT&T. Will the FTC go after Verizon, T-Mobile and Sprint next? Will this open a door allowing them to go after cable companies for throttling users. Ultimately, it will come down to whether or not customers were adequately informed by the company of any throttling issues. Regardless, it's great to see someone calling out these companies for their heavy abuse of the word "unlimited."

    Share your thoughts.
     
  2. LoneWolfArcher

    LoneWolfArcher Silver Member

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    Now we know why Big Red backed down.
     
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  3. MissionImprobable

    MissionImprobable Silver Member

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    Indeed. T-mobile may be covered as their recent plans have one specific offering with unlimited 4G data, but they did throttle users in the past as well, so I guess we'll see if they face any backlash. Even when the contract is up, you still must be made aware of changes to service. Neither you nor the carrier are obligated to continue at that point, but both parties should and are allowed to have informed consent in terms of the relationship remaining intact. Glad to see Washington has remained serious in regards to this and device unlocking.
     
  4. xeene

    xeene Gold Member

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    Hope ftc hits them where it hurts. A billion dollar settlement spread between all unlimited users sounds fair to me.
     
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  5. Heero121

    Heero121 Member

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    I dont know if they did, Ive recently had to open a case with the BBB against verizon, because despite Verizon saying they wont throttle, my speeds have gotten insultingly slow. They replaced my device twice, then said it might be an error in the sim card. All of which were (from my perspective) never the issue. I opened up the case a month ago and my speeds have yet to change, with exception right after I get off the phone with a rep. I know I cant be the only one, Ive attached my speeds. They've done numerous remote tests, network area tests, and have sent engineers out into the field to diagnose the issue. No resolve. The rep I am speaking to is however really nice (maybe because he has to be if hes the rep that Verizon asks to handle their BBB cases). Im hoping to resolve this soon.
    1.jpg 2.jpg
     
  6. Rognish

    Rognish Active Member

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    I don't think there will be a huge settlement besides most most of the time you see these and there's a fine and a slap on the hand and very little if any to the users.
     
  7. dgstorm

    dgstorm Editor in Chief
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    AT&T has since responded to the FTC lawsuit. Here's the quote and source link:

    Source: Engadget
     
  8. boidsonly

    boidsonly Active Member

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    ATT will settle with the FTC for some paltry amount and call it done.

    I have never before seen 3G show up on my phone at home but ever since VZW threatened to throttle, I have been seeing it almost daily, to include today. Who says VZW is not throttling?
     
  9. xeene

    xeene Gold Member

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    I say, I've burned through more gigs then you can imagine and not once was throttled. If I'm not in top 1% of data users I don't know who is.
    I used to connect multiple Pcs to my phone and seed torrents all day burning hundred of gigs a day. Prior to doing that I would call vzw and ask them if there would be a problem with me doing that and they gave me all clear.
     
  10. kodiak799

    kodiak799 Gold Member

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    Part of me thinks this is great news. The other part of me thinks this is bad news as it may force VZW to do away with unlimited all together.
     
  11. xeene

    xeene Gold Member

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    Vzw don't care about us, we are so miniscule it's no longer worth their trouble. Bad pr would hurt them more.
     
  12. MissionImprobable

    MissionImprobable Silver Member

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    I recall people noting that they had been throttled on multiple occasions over on XDA, but I don't recall anyone ever stating that they had received a text to notify them in that regard. It got so bad for some that they took AT&T to court over it. The company has been anything but transparent.