AT&T Pays Up to Resolve FTC Settlement

AT&T has agreed to pay the Federal Trade Commission $60 million to settle claims alleging of misleading consumers. The allegations detailed how AT&T was deceiving their customers with unlimited data plans that came with drastically reduced speeds once a certain data mark was hit. This undisclosed inconvenience frustrated customers whose internet and video streaming access was borderline impossible with the slowed data speed.

Andrew Smith, director of the consumer protection division at AT&T, issued an apology stating, “We promised unlimited data — without qualification — and failed to deliver on that promise.” The alleged data speed curbing began in 2011 and impacted customers who used as little as 2 GB in a billing period. It had been a very strong year for the telecommunications giant up until this point, but we expect them to bounce back with their upcoming streaming service partnering with HBO.

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