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azurnoir

(45,850 posts)
Wed Jun 17, 2015, 01:26 PM Jun 2015

AT&T fined $100M for selling 'unlimited' data, then slowing Internet speed to manage network

Source: strib

AT&T Mobility LLC has been hit with a $100 million fine for offering consumers "unlimited" data, but then slowing their Internet speeds after they hit a certain amount.

The Federal Communications Commission said Wednesday that the company misled consumers into buying plans they believed would give them unlimited ability to send and receive data, including Web browsing, GPS navigation and streaming videos. But the FCC said that once the consumer receached a certain level, that data would be slowed down significantly, at speeds lower than advertised.

AT&T said it will "vigorously dispute" the allegations.

"The FCC has specifically identified this practice as a legitimate and reasonable way to manage network resources for the benefit of all customers, and has known for years that all of the major carriers use it," the company said in a statement released to reporters. "We have been fully transparent with our customers, providing notice in multiple ways and going well beyond the FCC's disclosure requirements."

The hefty fine by the FCC comes on the heels of a federal lawsuit filed against the company last fall. The Federal Trade Commission, which enforces rules against deceptive advertising, said it wants to refund customers who were offered the unlimited data packages, only to be given slower data speeds than advertised. That lawsuit is still working its way through a federal court in California.

Read more: http://www.startribune.com/at-t-hit-with-100m-fine-for-its-unlimited-data-plans/307909071/

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AT&T fined $100M for selling 'unlimited' data, then slowing Internet speed to manage network (Original Post) azurnoir Jun 2015 OP
No wonder AT&T is so upset about Net Neutrality. lark Jun 2015 #1
better yet project_bluebook Jun 2015 #2
I agree. JDPriestly Jun 2015 #13
Good. Start the class-action suits. onehandle Jun 2015 #3
In a related story FlatBaroque Jun 2015 #4
Really? PADemD Jun 2015 #17
AT&T's threat to throttle me (I neared the cap two times in five years) was why I switched... brooklynite Jun 2015 #5
Have T-Mobile and they do the same, but told me up front bigbrother05 Jun 2015 #7
But that's too transparent! That's not the 'merican way. erronis Jun 2015 #10
I think you're on the $50 plan... brooklynite Jun 2015 #11
They're better... F4lconF16 Jun 2015 #20
And that's why I left those greedy bastards KeepItReal Jun 2015 #6
Which was their goal, they cut the speeds precisely to get rid of customers like you and cstanleytech Jun 2015 #14
Cut my ties with AT&T last week other than internet. My only other option there is Comcast. Lochloosa Jun 2015 #8
Notice their response doesn't address the false advertising. randome Jun 2015 #9
Oh the irony. n/t Aerows Jun 2015 #12
I guess this means they will pass the costs yuiyoshida Jun 2015 #15
So, ATT screws their customers and the fed gets $$$$ OffWithTheirHeads Jun 2015 #16
Yup. F4lconF16 Jun 2015 #21
This is the part that pisses me off jamzrockz Jun 2015 #26
Cricket swwallace81 Jun 2015 #18
I wonder if sprint is next? kenfrequed Jun 2015 #19
Sprint has a backhaul problem. nt BumRushDaShow Jun 2015 #23
Not only At & T Virgin does this Rosa Luxemburg Jun 2015 #22
YES! And about time eom catrose Jun 2015 #24
So.... RobinA Jun 2015 #25
kick for truth Blue_Tires Jun 2015 #27
You know some MBA got a bonus for coming up with this plan. 6chars Jun 2015 #28

lark

(23,099 posts)
1. No wonder AT&T is so upset about Net Neutrality.
Wed Jun 17, 2015, 01:33 PM
Jun 2015

It's already been secretly restricting access and wants to be able to do it in the light of day.

 

project_bluebook

(411 posts)
2. better yet
Wed Jun 17, 2015, 01:37 PM
Jun 2015

lets break up these monopolies, open the cable to my house for all competitors like they do overseas. Prices would drop, quality of service would go up.

brooklynite

(94,571 posts)
5. AT&T's threat to throttle me (I neared the cap two times in five years) was why I switched...
Wed Jun 17, 2015, 01:56 PM
Jun 2015

...to T-Mobile. I now pay less for calls, texts, unlimited 4g and tethering.

bigbrother05

(5,995 posts)
7. Have T-Mobile and they do the same, but told me up front
Wed Jun 17, 2015, 02:08 PM
Jun 2015

Pay for 1G at high speed per month, then speed drops after that, but no extra costs for extra data. Don't have to pay for any extra charges, but don't use a lot on my phone plan each month either.

F4lconF16

(3,747 posts)
20. They're better...
Wed Jun 17, 2015, 04:26 PM
Jun 2015

But they'll still try to scam you. I unfortunately fell for their insurance scam--they strongly misled me when they sold it to me. I asked a lot of questions about it, read all the paperwork they showed me in the store, and today discovered there's a $175 deductible they never bothered to mention. Sure, they sent that information to me with a mass of other paperwork after I had already purchased it, but that's just straight up deceptive. And now I have no phone, because I can't afford to move, eat, and repair my phone all at once.

We need to break up the monopolies. Switching won't solve much, unfortunately.

KeepItReal

(7,769 posts)
6. And that's why I left those greedy bastards
Wed Jun 17, 2015, 02:01 PM
Jun 2015

I got the original iPhone on day 1 with an unlimited data plan.

A couple of years ago (and multiple ATT iPhone versions later) my data speed slows to barely faster than dial-up.

ATT claimed I was using too much data for my area. I was using an original, unhacked iPhone and apps acquired from the Apple store.

They made up a 3 gigabyte threshold all of a sudden and would slow me down with only a day to two left in my billing cycle.

They wanted me to purchase a new data plan for more money.

I said F That and went to TMO.

cstanleytech

(26,291 posts)
14. Which was their goal, they cut the speeds precisely to get rid of customers like you and
Wed Jun 17, 2015, 03:42 PM
Jun 2015

they knew beforehand that any "fine" by the FCC for such practices would be a joke which as we have seen it was.

Lochloosa

(16,064 posts)
8. Cut my ties with AT&T last week other than internet. My only other option there is Comcast.
Wed Jun 17, 2015, 02:10 PM
Jun 2015

Some choice....

 

randome

(34,845 posts)
9. Notice their response doesn't address the false advertising.
Wed Jun 17, 2015, 02:21 PM
Jun 2015

Classic misdirection.
[hr][font color="blue"][center]Aspire to inspire.[/center][/font][hr]

yuiyoshida

(41,831 posts)
15. I guess this means they will pass the costs
Wed Jun 17, 2015, 03:57 PM
Jun 2015

down to their customers, which means my phone bill will probably go up...isn't that how corporations play that game of monopoly now?

F4lconF16

(3,747 posts)
21. Yup.
Wed Jun 17, 2015, 04:28 PM
Jun 2015

It's how it works these days. Or, rather, since always. Funny how capitalism tends to do that. When you put growth and profit at the core of a system, it doesn't work out well for the little people.

 

jamzrockz

(1,333 posts)
26. This is the part that pisses me off
Wed Jun 17, 2015, 07:23 PM
Jun 2015

The feds get the money not the customers who were hurt by the policy. We see this with fines for banks that screwed home owners, customers who were charged excessive fees.

The saddest part of it all is that the customers who were supposed to benefit from fines like this are the ones who will pay for the fines at the end of the day via price hikes.

swwallace81

(47 posts)
18. Cricket
Wed Jun 17, 2015, 04:12 PM
Jun 2015

I went from Verizon to Cricket. 4 smart phones for $100/month no ups no extras. Each phone gets 2.5 gigs of 4g, then drops to 3g if you go over. Saved $120.00/month and they use the AT&T network.

kenfrequed

(7,865 posts)
19. I wonder if sprint is next?
Wed Jun 17, 2015, 04:15 PM
Jun 2015

A lot of these carriers have been doing stuff like this for awhile.

With Sprint I have noticed that there are "certain neighborhoods" that appear to have coverage at the 4g level but that the download rates instantly drop to paralysis levels.

RobinA

(9,893 posts)
25. So....
Wed Jun 17, 2015, 07:08 PM
Jun 2015

does anyone know if they've stopped doing this? I got warned the same month I got a little Bluetooth speaker and started streaming satellite radio at work. I loved the music but didn't want the threatened slooooow Internet.

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