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AT&T Will Pay $60 Million to Settle Throttling Allegations

FTC Settlement
When carriers break their promises, you pay

The FTC says AT&T will pay $60 million to settle 2014 claims that it sold “unlimited” plans and then throttled customers who hit data caps. Here’s what the settlement means for you.

1 The $60 Million Settlement

Misleading smartphone customers has a price—a very high one. According to the Federal Trade Commission, AT&T will pay $60 million to settle litigation with the FTC over 2014 allegations that the wireless giant misled millions of customers by charging them for an “unlimited plan” and then slowing their data speed when the customers hit data caps. The “bait and switch scam” was denounced by FTC Chairman Ronit Chopra in a strongly worded statement about dominant companies like AT&T whose “market power, financial resources, and one-sided information gives them license to ignore their own contractual obligations while aggressively enforcing every little clause in fine print.

2 What AT&T Must Change

Although this settlement may not have major financial consequences on a behemoth like AT&T, it sends a clear message to executives that prioritizing profit over customers with lies and scams will have consequences. According to Chopra, “AT&T fleeced its customers to enrich executives and its investors” and in addition to the monetary settlement, AT&T cannot lie to its customers again. In fact, the wireless carrier is prohibited from making any representation about the speed or amount of its mobile data, including that it is “unlimited,” without disclosing any material restrictions on the speed or amount of data. The disclosures need to be prominent, not buried in fine print or hidden behind hyperlinks. In other words, AT&T needs to be more transparent.

3 Why Carrier Promises Often Fall Short

It’s not at all surprising that big promises made by wireless carriers usually turn out to be exaggerated or simply untrue — it helps to know the best and worst rated mobile carriers before you commit. More and more instances of such deceit cause consumers to become deeply distrustful of the company or, they are simply unaware that they are victims of a scam.

4 How to Stop Overpaying

Although we’re grateful that regulatory bodies like the FTC step in to protect customers, there’s another way you can ensure that they pay the lowest rate possible: send your monthly bills to Billshark and let us lower your AT&T bill so you never overpay again.

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Frequently Asked Questions

How much will AT&T pay to settle the throttling allegations?

According to the Federal Trade Commission, AT&T will pay $60 million to settle litigation over 2014 allegations that it misled millions of customers. The FTC alleged AT&T charged customers for an “unlimited plan” and then slowed their data speed when those customers hit data caps.

What did the FTC accuse AT&T of doing?

The FTC alleged that AT&T misled millions of customers by charging them for an “unlimited plan” and then throttling their data speed once they hit data caps. FTC Chairman Ronit Chopra called it a “bait and switch scam” and said AT&T fleeced its customers to enrich executives and investors.

What is AT&T now prohibited from doing under the settlement?

Beyond the monetary settlement, AT&T cannot lie to its customers again. The carrier is prohibited from making any representation about the speed or amount of its mobile data, including that it is “unlimited,” without disclosing any material restrictions. Those disclosures must be prominent, not buried in fine print or hidden behind hyperlinks.

Who criticized AT&T over the throttling allegations?

FTC Chairman Ronit Chopra denounced the conduct in a strongly worded statement, describing dominant companies like AT&T whose market power, financial resources, and one-sided information give them license to ignore their own contractual obligations while aggressively enforcing every little clause in fine print.

How can I avoid overpaying my wireless and other bills?

While regulators like the FTC step in to protect customers, you can also send your monthly bills to Billshark. Billshark works to make sure you pay the lowest rate possible so you never overpay again on your recurring bills.

Save on the Bills You Just Read About

Billshark negotiates your bills for you — no savings, no fee.

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The FTC says AT&T will pay $60 million to settle 2014 claims that it sold “unlimited” plans and then throttled customers who hit data caps.

Misleading smartphone customers has a price—a very high one.

Although this settlement may not have major financial consequences on a behemoth like AT&T, it sends a clear message to executives that prioritizing profit over customers with lies and scams will have consequences.

It’s not at all surprising that big promises made by wireless carriers usually turn out to be exaggerated or simply untrue —.

Although we’re grateful that regulatory bodies like the FTC step in to protect customers.

According to the Federal Trade Commission, AT&T will pay $60 million to settle litigation over 2014 allegations that it misled millions of customers.

The FTC alleged that AT&T misled millions of customers by charging them for an “unlimited plan” and then throttling their data speed once they hit data caps.

Beyond the monetary settlement, AT&T cannot lie to its customers again.

FTC Chairman Ronit Chopra denounced the conduct in a strongly worded statement.

While regulators like the FTC step in to protect customers, you can also send your monthly bills to Billshark.

Billshark negotiates your bills for you — no savings, no fee.

Billshark helps lower internet, wireless, cable, satellite radio, and other monthly bills.

Our experts handle providers for customers and share updates throughout the process.

Customers pay only when Billshark finds savings on eligible bills.

1 The $60 Million Settlement.

2 What AT&T Must Change.

3 Why Carrier Promises Often Fall Short.

4 How to Stop Overpaying.

Frequently Asked Questions.

How much will AT&T pay to settle the throttling allegations?.

What did the FTC accuse AT&T of doing?.

What is AT&T now prohibited from doing under the settlement?.

Who criticized AT&T over the throttling allegations?.

How can I avoid overpaying my wireless and other bills?.

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