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Wednesday, June 17, 2015 4:47:54 PM
FCC to Fine AT&T $100 Million Over Capping of Unlimited Plans
FCC says AT&T violated part of Open Internet rules by labeling plans as unlimited, throttling connections
By Gautham Nagesh
June 17, 2015 12:19 p.m. ET
http://www.wsj.com/articles/fcc-to-fine-at-t-100-million-for-capping-unlimited-data-plans-1434557988?mod=e2tw
WASHINGTON—The Federal Communications Commission plans to fine AT&T Inc. $100 million for allegedly deceiving consumers about unlimited wireless data plans, the agency said Wednesday.
The FCC alleges that AT&T sold consumers data plans advertised as unlimited, then capped data speeds for those customers after they used a set amount of data within a billing cycle. The FCC says those capped speeds were much slower than the normal network speeds advertised by AT&T, and that they impaired consumers’ ability to access the Internet or use applications for the rest of their billing cycle.
The FCC says AT&T violated the transparency rule passed as part of its 2010 Open Internet rules by labeling the plans as unlimited. Most of those rules were struck down by a federal court last January, but the transparency rule was upheld.
“Consumers deserve to get what they pay for,” FCC Chairman Tom Wheeler said in a statement. “Broadband providers must be up front 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.”
An AT&T spokesman said the company plans on “vigorously disputing the FCC’s assertions.” The spokesman said the FCC previously identified the practice as a legitimate and reasonable way to manage its network to benefit all customers.
This is the largest proposed fine in FCC history, according to a senior FCC official. The official said AT&T made billions off the practice.
The FCC said it has received thousands of complaints from customers with AT&T’s unlimited data plan who said they were surprised and misled by AT&T throttling their data speeds.
“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.”
The FCC passed new Open Internet rules in February that bar mobile broadband providers from blocking or slowing down traffic to specific websites. Those rules expand the FCC’s authority to regulate wireless broadband providers.
Write to Gautham Nagesh at gautham.nagesh@wsj.com
http://www.wsj.com/articles/fcc-to-fine-at-t-100-million-for-capping-unlimited-data-plans-1434557988?mod=e2tw
FCC says AT&T violated part of Open Internet rules by labeling plans as unlimited, throttling connections
By Gautham Nagesh
June 17, 2015 12:19 p.m. ET
http://www.wsj.com/articles/fcc-to-fine-at-t-100-million-for-capping-unlimited-data-plans-1434557988?mod=e2tw
WASHINGTON—The Federal Communications Commission plans to fine AT&T Inc. $100 million for allegedly deceiving consumers about unlimited wireless data plans, the agency said Wednesday.
The FCC alleges that AT&T sold consumers data plans advertised as unlimited, then capped data speeds for those customers after they used a set amount of data within a billing cycle. The FCC says those capped speeds were much slower than the normal network speeds advertised by AT&T, and that they impaired consumers’ ability to access the Internet or use applications for the rest of their billing cycle.
The FCC says AT&T violated the transparency rule passed as part of its 2010 Open Internet rules by labeling the plans as unlimited. Most of those rules were struck down by a federal court last January, but the transparency rule was upheld.
“Consumers deserve to get what they pay for,” FCC Chairman Tom Wheeler said in a statement. “Broadband providers must be up front 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.”
An AT&T spokesman said the company plans on “vigorously disputing the FCC’s assertions.” The spokesman said the FCC previously identified the practice as a legitimate and reasonable way to manage its network to benefit all customers.
This is the largest proposed fine in FCC history, according to a senior FCC official. The official said AT&T made billions off the practice.
The FCC said it has received thousands of complaints from customers with AT&T’s unlimited data plan who said they were surprised and misled by AT&T throttling their data speeds.
“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.”
The FCC passed new Open Internet rules in February that bar mobile broadband providers from blocking or slowing down traffic to specific websites. Those rules expand the FCC’s authority to regulate wireless broadband providers.
Write to Gautham Nagesh at gautham.nagesh@wsj.com
http://www.wsj.com/articles/fcc-to-fine-at-t-100-million-for-capping-unlimited-data-plans-1434557988?mod=e2tw
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