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FCC slaps AT&T with $100-million fine for lying about ‘unlimited’ data plans

What exactly did AT&T think ‘unlimited’ means?

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Kevin Collier

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If you’re an AT&T customer who thought your “unlimited” data plan’s “maximum” plan wasn’t really performing, you’re probably right. The Federal Communication Commission is suing the telecommunications giant for a whopping $100 million for misleading customers about their service.

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“The FCC will not stand idly by while consumers are deceived by misleading marketing materials and insufficient disclosure,” FCC chair Tom Wheeler said in a statement.

AT&T, the FCC claims, systematically implemented a “Maximum Bit Rate” policy on customers who had unlimited data usage, which somewhat hurts a company’s ability to truthfully claim their data policy is unlimited. Under the policy, customers who reached a certain data cap each month would see their Internet data speeds slow by “orders of magnitude,” according to court filings.

In a statement, AT&T partially rebuffed the charges, saying, “We have been fully transparent with our customers, providing notice in multiple ways and going well beyond the FCC’s disclosure requirements.” But in a press call, a senior FCC official described AT&T’s attempts to disclose their data caps as inaccurate and incomplete.

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The lawsuit comes on the heels of a completely unrelated, but similarly massive, charge against AT&T. In early April, the two parties settled for $25 million over loose security at AT&T’s third-party customer service centers, resulting in the theft of nearly 300,000 customers’ data.

Photo via Jericho/Wikipedia (CC BY 3.0) | Remix by Fernando Alfonso III

 
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