Breaking News Business Technology

FTC Files Complaint Against AT&T

It appears AT&T needs a good lawyer.

And, perhaps, a dictionary.

ftcThe telecommunications company has found itself in hot water with the Federal Trade Commission which is accusing AT&T of “throttling” customers’ connections. Throttling is a term used to describe the process of slowing Internet connections.

The commission claims AT&T has been doing just that to customers on ‘unlimited’ data plans. Companies have been known to slow connections on customers who have unlimited packages and use large amounts of data.

The FTC, Tuesday, issued a statement explaining it had filed a complaint against AT&T Mobility for misleading millions of customers “by charging them for ‘unlimited’ data plans while reducing their data speeds, in some cases by nearly 90 percent.”

The commission claims AT&T did not disclose to customers that should they reach certain data points within a billing cycle their data speeds would be reduced making it nearly impossible to carry out some functions on their Smartphones.

“AT&T promised its customers ‘unlimited’ data, and in many instances, it has failed to deliver on that promise,” FTC chairwoman Edith Ramirez. “The issue here is simple: ‘unlimited’ means unlimited.”

AT&T, in a statement to CNet, denied the allegations and questioned why it was the subject of the complaint.

“The FTC’s allegations are baseless and have nothing to do with the substance of our network management program,” the company stated.

“It’s baffling as to why the FTC would choose to take this action against a company that, like all major wireless providers, manages its network resources to provide the best possible service to all customers, and does it in a way that is fully transparent and consistent with the law and our contracts.”

About the author


W. Brice McVicar

W. Brice McVicar is a staff writer for SiteProNews.