(The Hosting News) – The Federal Trade Commission has filed a lawsuit against AT&T for throttling Internet speeds for customers in unlimited data plans.
On Tuesday the agency stated that the mobile giant had greatly reduced data speeds for almost 90 percent of unlimited data customers, failing to inform customers once they used a set amount of data each month that their speeds would be throttled.
“AT&T promised its customers ‘unlimited’ data, and in many instances, it has failed to deliver on that promise,” saidFTC Chairwoman Edith Ramirez. “The issue here is simple: ‘unlimited’ means unlimited.”
The complaint noted that AT&T first started the throttling practice in 2011. When customers used 2 gigabytes of data each billing cycle, their data speeds were reduced around 80 to 90 percent. The FTC said at least 3.5 million customers have been throttles 25 million times.
However, AT&T responded to these reports by stating the allegations against them are “baseless” and that they notified customers of the throttling via bill notices and a national press release, noting that this has only affected 3% of customers.
“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,” said AT&T senior executive vice president Wayne Watts, “and does it in a way that is fully transparent and consistent with the law and our contracts.”