TracFone Settles with FTC for $40M over Alleged False Unlimited Data Ads

By on January 28, 2015

TracFone agreed to pay $40 million to settle Federal Trade Commission charges of deceiving its mobile customers with misrepresentations of “unlimited” data service.

Specifically, the FTC alleged TracFone slowed or cut off its customers’ mobile data after they exceeded certain fixed limits in a 30-day period even though TracFone promised those customers unlimited data for $45 prepaid monthly mobile plans.

“The issue here is simple: when you promise consumers ‘unlimited,’ that means unlimited,” said Jessica Rich, director of the FTC’s Bureau of Consumer Protection.  “This settlement means that Straight Talk, Net10, Simple Mobile, and Telcel America customers will be able to get money back from the company for services the company promised but didn’t deliver.”

If you would like additional information about the TracFone settlements with the FTC or other news, please click the green button below and fill out the form.