FTC’s Data Throttling Case Against AT&T Moves Ahead Pursuant to Court Ruling

By on April 2, 2015

A San Francisco federal judge denied a petition by AT&T to dismiss a fraudulent billing lawsuit filed by the Federal Trade Commission (FTC) which accused the telecom company of misleading 3.5 million customers by data throttling, limiting the data, purportedly offered to customers who paid for the unlimited data plans.

AT&T reasoned that the FTC’s complaint was not valid since data throttling was not within the scope of the agency’s governance and that its “maximum bit rate” policy is FCC compliant.

The FTC is seeks to end the practice of data throttling along with millions of dollars in restitution to customers who were not informed that their data speeds would be reduced even though they paid for unlimited data.

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