AT&T fined $100 million for misleading customers about 'unlimited' data plans

[MultiTroll]

...and slowing speeds on purpose.

Just goes to show you how much money these bitches have.
What is this, 1% of their profit?

The FCC said that it is fining AT&T $100 million for misleading mobile customers about its "unlimited" data plans.AT&T (T (http://money.cnn.com/quote/quote.html?symb=T&source=story_quote_link), Tech30 (http://money.cnn.com/technology/tech30/index.html?iid=EL)) subjected its unlimited data plan customers to significantly slower speeds (http://www.att.com/esupport/article.jsp?sid=KB410284&cv=820) after they used more than 3 GB of 3G data or 5 GB of 4G data in a single billing cycle. AT&T then failed to adequately notify its customers that their speeds would be throttled after they crossed a certain data threshold, the FCC said.





"Consumers deserve to get what they pay for," said FCC Chairman Tom Wheeler in a statement. "Broadband providers must be upfront and transparent about the services they provide. The FCC will not stand idly by while consumers are deceived by misleading marketing materials and insufficient disclosure."
AT&T stopped offering unlimited data plans to new customers in 2009, but some customers have been grandfathered into the old plans. In 2011, AT&T instituted a "maximum bit rate" policy, capping speeds at about a half megabit per second for heavy data users (compared to around 15 Mbps to 20 Mbps for typical 4G download speeds, the same as a home broadband connection).
The cap only goes into effect after an unlimited plan customer hits the threshold, and it lasts only until the end of a billing cycle. Last month, AT&T tweaked its policy to throttle speeds only when the network was "congested," though it didn't specify how it measures that.
But the FCC said that AT&T's unlimited customers had been subjected to slower speeds for an average of 12 days -- nearly half a billing cycle. The FCC noted that throttled customers would have trouble connecting to mapping services or streaming video over AT&T's network.
AT&T says it will fight the fine.
"We will vigorously dispute the FCC's assertions," said Emily Edmonds, spokeswoman for AT&T. "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. We have been fully transparent with our customers, providing notice in multiple ways and going well beyond the FCC's disclosure requirements."
Related: The cell phone data scam (http://money.cnn.com/2015/04/23/technology/cell-phone-ripoff/?iid=EL)
Verizon (VZ (http://money.cnn.com/quote/quote.html?symb=VZ&source=story_quote_link), Tech30 (http://money.cnn.com/technology/tech30/index.html?iid=EL)) abandoned similar plans to slow down 4G connection speeds for unlimited data plan customers (http://money.cnn.com/2014/10/02/technology/mobile/verizon-throttle/index.html?iid=EL) in October 2014 after Wheeler openly called the plan "disturbing." The FCC issued a similar notice to T-Mobile (TMUS (http://money.cnn.com/quote/quote.html?symb=TMUS&source=story_quote_link)), which improved its notifications (http://money.cnn.com/2014/11/25/technology/mobile/t-mobile-fcc-data/index.html?iid=EL) when it throttles unlimited plan customers. The commission also sued Tracfone for $40 million in January for falsely advertising its unlimited plan.
The FCC lashed out at AT&T (http://money.cnn.com/2014/10/28/technology/mobile/att-throttling-unlimited-data/index.html?iid=EL)last October, but AT&T refused to back down.
The agency said that it has received thousands of complaints from unlimited data plan customers who said that AT&T misled them.
"Unlimited means unlimited," said FCC Enforcement Bureau Chief Travis LeBlanc. "As today's action demonstrates, the Commission is committed to holding accountable those broadband providers who fail to be fully transparent about data limits."
Related: T-Mobile changes data throttling notification (http://money.cnn.com/2014/11/25/technology/mobile/t-mobile-fcc-data/index.html?iid=EL)


CNNMoney (New York) June 17, 2015: 1:25 PM ET


http://money.cnn.com/2015/06/17/technology/att-unlimited-dat-plan/index.html?iid=Lead

[Blake]

Mother fuckers. I wonder if t mobile is doing the same shit.

[Strange Love]

Verizon is doing the same shit. Pretty much every phone brand is. They just haven't been caught.

[mouse]

I abandoned AT&T went to T-Mobile they claim to have unlimited after three days of watching Netflix I got a warning I went over my 5gb monthly limit.

You have to read the fine print the only thing unlimited is texting and emails.

The young kid sold me a POS LG basic phone you can't grab it by the sides without killing your YouTube or taking a picture of the inside of your pocket. I thought I had to use a T-mobile phone until I went in to pay my bill and I saw IPhones I told the kid why couldn't I had kept my iPhone I only got 10 dollars for it.

I'm so upset I want to move out of the city get a land line and go back to dial up.

T-Mobile agrees to reveal customers' throttled speeds

http://www.cnet.com/news/t-mobile-agrees-to-reveal-customers-throttled-speeds/

[m>s]

They used to do this to me a while back it pissed me off. They sold me an unlimited plan and didn't want to follow through. And they just started doing it they didn't announce anything.

[The Reckoning]

i thought this was common practice? lol

[m>s]

i thought this was common practice? lol
Sure if that's what the predetermined rules were. These are people who purchased an unlimited data plan that they no longer sell.

[ducks]

Mother fuckers. I wonder if t mobile is doing the same shit.

yes

[Blake]

Then i wonder if we're all about to get one of those letters in the mail about joining up with a class action lawsuit so that 100 million of us can share $100 million in damages

[Mitch]

I get those messages, I haven't been throttled for over a year now despite using 10gb+ a month

[Winehole23]

Back in 2011, AT&T stopped selling unlimited wireless data plans, and began heavily pushing more expensive capped and metered plans. Existing unlimited users at the time were grandfathered, but the company engaged in all manner of sneaky behavior to try and make life as unpleasant as possible for these users, ranging from blocking them from using Facetime (https://www.techdirt.com/blog/wireless/articles/20120822/11243320124/att-tries-to-tapdance-around-net-neutrality-regulations.shtml) unless they migrated to metered plans, to heavily throttling these "unlimited" users after only consuming a few gigabytes of data. Ultimately AT&T faced a $100 million fine (https://www.techdirt.com/blog/wireless/articles/20150617/11444331379/fcc-moves-to-fine-att-100-million-throttling-unlimited-plan-users.shtml) by the FCC (currently being contested by AT&T), and a 2014 lawsuit by the FTC (https://www.techdirt.com/blog/netneutrality/articles/20150108/10422129635/att-plays-legal-pattycake-with-ftcfcc-jurisdiction-common-carrier-law-just-so-it-can-pretend-limited-data-service-is-unlimited.shtml) for misleading consumers and dramatically changing the terms of service while users were under contract.


Originally we noted how AT&T had used a Schrodinger-esque (https://www.techdirt.com/blog/netneutrality/articles/20150108/10422129635/att-plays-legal-pattycake-with-ftcfcc-jurisdiction-common-carrier-law-just-so-it-can-pretend-limited-data-service-is-unlimited.shtml) attempt to derail the lawsuit by claiming that since it would soon be a common carrier under Title II of the Communications Act (something its lawyers fought and continue fighting to this day), it didn't technically qualify as a common carrier under the FTC Act. At the time, consumer groups like Free Press found AT&T's tap dancing rather funny:


"It is rich to see AT&T in two different appellate courts at once, simultaneously arguing in this case that its mobile broadband is a common carriage service -- and therefore not subject to FTC jurisdiction -- while telling the DC Circuit that AT&T's mobile broadband cannot be treated as a common carrier service."


Initially it seemed like the laugh would be on AT&T, with a court last year denying AT&T's motion for dismissal (https://s3.amazonaws.com/s3.documentcloud.org/documents/1699427/attthrottle.pdf) (pdf), ruling it was "unambiguously clear" that only AT&T wireless voice, not wireless data, was classified as common carrier when the lawsuit was filed last fall. But this week an appeals court in California contradicted this finding and dismissed the FTC's case entirely, the ruling (https://assets.documentcloud.org/documents/3035761/15-16585.pdf) (pdf) stating AT&T can no longer be held in violation of the FTC Act because it's now classified as a common carrier under the Communications Act:


"The common carrier exemption in section 5 of the FTC Act carves out a group of entities based on their status as common carriers. Those entities are not covered by section 5 even as to non-common carrier activities. Because AT&T was a common carrier, it cannot be liable for the violations alleged by the FTC. The district court’s denial of AT&T’s motion to dismiss is reversed, and the case is remanded for entry of an order of dismissal."


There's some indications in the ruling that the court wasn't sure that the FTC ever had authority over AT&T under the FTC Act (Title II or no). But it's still amazing to realize that AT&T was simultaneously arguing before two different courts that ISPs should not be classified as common carriers under Title II, while at the same time using this pending reclassification as grounds to dismiss the FTC lawsuit. Fancy footwork, that. AT&T may still face the $100 million FCC fine for lying to its customers, provided its lawyers can't tap dance out of that punishment as well. This all occurs, of course, as AT&T's lawyers and trade groups continue their original assault on Title II and the net neutrality rules Title II allowed (https://www.techdirt.com/blog/netneutrality/articles/20160801/08274535128/broadband-industry-formally-tries-once-again-to-kill-net-neutrality.shtml).https://www.techdirt.com/articles/20160829/10550735383/att-dodges-ftc-throttling-lawsuit-using-title-ii-classification-it-vehemently-opposed.shtml

[Thread]

They ought to get McDonalds for misleading customers as to the presentation and quality of their products. It's a fuckin' disgrace. Inedible garbage.

GD shame.

[SpursforSix]

They ought to get McDonalds for misleading customers as to the presentation and quality of their products. It's a fuckin' disgrace. Inedible garbage.

GD shame.

Oh come on. No one goes to McDonalds expecting to get something that looks like the picture. But they can't show a picture of the actual food because it would be too offputting. There's an understanding not to look at your Quarter Pounder while you're eating it.

[Thread]

Oh come on. No one goes to McDonalds expecting to get something that looks like the picture. But they can't show a picture of the actual food because it would be too offputting. There's an understanding not to look at your Quarter Pounder while you're eating it.

It's beyond the expected & reality. Upon it's creation the Big Mac was a superior presentation and a quality product. The Fish Filet was a premier sandwich. The fries were something to anticipate and enjoy. It's all shit now, but, the advertising has gone forward and now bears no relevance, absolutely none to what is actually delivered. There is no excuse for this. They give away multi-millions to charity year in-year out. Use a good portion of that amount to service your customers, fast food doesn't have to be shit. They don't care. Their restaurants are filthy. They put their efforts into symbolism:::inside playgrounds, endless advertising of falsehoods, no training of employees. There is no longer any substance. And McDonalds is not alone. They're just the most egregious.

It's garbage.

[Chris]

It's beyond the expected & reality. Upon it's creation the Big Mac was a superior presentation and a quality product. The Fish Filet was a premier sandwich. The fries were something to anticipate and enjoy. It's all shit now, but, the advertising has gone forward and now bears no relevance, absolutely none to what is actually delivered. There is no excuse for this. They give away multi-millions to charity year in-year out. Use a good portion of that amount to service your customers, fast food doesn't have to be shit. They don't care. Their restaurants are filthy. They put their efforts into symbolism:::inside playgrounds, endless advertising of falsehoods, no training of employees. There is no longer any substance. And McDonalds is not alone. They're just the most egregious.

It's garbage.

Absolutely. I remember the quality of a McDonald's hamburger in the 80's compared to now and it is night and day. The Mcnuggets used to be fat and juicy - and delicious. The bacon egg and cheese biscuit and those egg mcmuffins with sausage were terrific. They are complete garbage now.

[DMC]

When you know it's bullshit, stop using it. You don't get into a 2 year contract with McDonald's.

[Thread]

When you know it's bullshit, stop using it. You don't get into a 2 year contract with McDonald's.

You get absolutely nothing, but, garbage. And yet the lines outside are double laned & 7-9 cars deep.

[DMC]

You get absolutely nothing, but, garbage. And yet the lines outside are double laned & 7-9 cars deep.

Don't go. Quality is driven by demand. It's why married women get fat and dumpy.

[Thread]

Don't go. Quality is driven by demand. It's why married women get fat and dumpy.

I don't.

[DMC]

I don't.
Then it's a non-issue. If not for shitty food how would you recognize great food?

[Thread]

Then it's a non-issue. If not for shitty food how would you recognize great food?

My ass.

[Winehole23]

https://www.techdirt.com/articles/20161018/14062235832/ftc-warns-att-court-victory-throttling-could-screw-consumers-decades.shtml

[Wild Cobra]

Mother fuckers. I wonder if t mobile is doing the same shit.

No, T-Mobile clearly lets the consumers know they only get the 4G speed up to so many Gbytes. My plan gives each of my five lines 6 GB/mo. You can pay more for more GB. The data is unlimited, just not the 4G speed.

I think they slow you down to 3G or Edge speeds after your max.