The Federal Communications Commission said it would fine AT&T $100 million for slowing down speeds for customers with unlimited mobile data plans.
The FCC found AT&T severely slowed down data speeds for customers who had bought unlimited data plans once they had used a certain amount of data. The company did not tell the customers, the FCC said.
AT&T began offering unlimited data plans in 2007, though with the emergence of smartphones, the company no longer offers those plans to new customers. Existing customers were grandfathered in to their unlimited data plans when the change was made in 2010. Those customers were the ones affected, seeing their data speeds slowed by up to 90 percent.
The FCC found that by failing to inform customers that their data speeds would be reduced once their maximum data use rate was reached, the company violated the 2010 Open Internet Transparency Rule.
“Broadband providers must be upfront and transparent about the services they provide,” FCC Chairman Tom Wheeler said Wednesday. “The FCC will not stand idly by while consumers are deceived by misleading marketing materials and insufficient disclosure.”
AT&T said Wednesday it will “vigorously dispute” the FCC’s charges. The company is also fighting a lawsuit over deceptive advertising from the Federal Trade Commission.
“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,” AT&T said. “We have been fully transparent with our customers, providing notice in multiple ways, and going well beyond the FCC’s disclosure requirements.”
