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FTC Says AT&T Has Misled Millions of Consumers with ‘Unlimited’ Data Promises

489 pointsby tshtfover 10 years ago

33 comments

swartkransover 10 years ago
For those of us who are Americans, isn&#x27;t it amazing how the companies that provide us with access to the internet are pretty much among the most hated companies in our country? I feel like I&#x27;d rank them almost up there with Halliburton, Sodexo and Blackwater.<p>First of all they are incredibly expensive. They try to actively create worse experiences for their customers. Forced inclusions of apps on android phones on mobile carriers. A comcast rep wanted to install a browser toolbar on my computer. Vague billing that leads to sticker shock. $0.25 per tiny little text message, really? I paid next to nothing to post this comment on HN, but had I posted such large amounts of text via a text message, it would have cost a lot of money.<p>Talk to them on the phone and they try to sell you things you don&#x27;t need. Like one time I wanted to get HBO, HBO costs $15 a month, period, but when you talk to them on the phone they wont tell you that unless you ask a specific question, they&#x27;ll tell you about their bundles which will cost you hundreds of dollars extra. This is a really scummy thing to do. They know the person who contacted them only wants HBO, but then they sell them something way worse they didn&#x27;t want.<p>Collusion with illegal federal programs that involved lying to congress, lying to our public representatives. These companies are filled with scum from top to bottom. The people that you deal with in the stores, the people that decide which phones you can buy at their store and what they have on them, the people you talk to on the phone, the executives. It must be like working for a tobacco company, once you&#x27;re willing to work at such a place the culture just destroys your integrity or something. I have no idea. I even still considerably distrust tmobile, even though they seem to be trying to change things.
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Someone1234over 10 years ago
Here&#x27;s the thing about these unlimited-throttling programs: They are good for both the consumer AND cellular operator, but you have to be upfront and honest about it.<p>AT&amp;T&#x27;s problem is that they just one day up and decided to start throttling unlimited customers (down to 10-20% of their normal speed) without a warning, and without it being made clear in any of their marketing material or contracts.<p>The reason why I call these programs &quot;good&quot; is that they all but eliminate overage charges from a consumer&#x27;s bill. With limited data, you often get charged excessive amounts if you go over your cap (disproportionately large amounts at times).<p>So for example, if a consumer got their teenager 2 GB of data, and that teenager ran up a 5 GB usage bill one month, that could be an additional $60 charge ($20&#x2F;GB) out of the blue. Unlimited-throttled data averts that possibility (and the teenager in this example is the only one negatively impacted by the excess usage).<p>This is how T-Mobile currently operates on all of their Simple Choice plans (both unlimited and limited). They have scrapped overage charges (so there is no bill-shock) and instead just throttle you down.<p>The only major difference between what T-Mobile currently do and what AT&amp;T were doing, is that AT&amp;T lied and hid it, and worse still charged customers ETF if they left as a result. T-mobile is completely upfront about the policy and how it is enforced.<p>PS - T-Mobile also do the same thing for roaming data, no overage charges.
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Drakimover 10 years ago
&gt; began throttling data speeds in 2011 for its unlimited data plan customers after they used as little as 2 gigabytes of data in a billing period<p>This is what really gets me. I expected this sort of situation to come about when some jackass used up 1 petabyte of bandwidth on his unlimited plan, but 2 gigabytes?<p>To me, that&#x27;s like offering unlimited coffee refills, but stopping customers after the second cup, with some excuse that there has to be some limits to &quot;unlimited&quot;.
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kolbeover 10 years ago
I&#x27;ve been on the AT&amp;T unlimited plan for a long while now, and I&#x27;ve been looking forward to the day when I get a $10 settlement check in the mail whilst some law firm pulls in $200mm in legal fees.
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nerdtalkerover 10 years ago
AT&amp;T silently killed what formerly was an unlimited plan out of the blue one day, and not many people noticed. I would constantly run into the 3 GB limit a week or two into the month and then suffer through the slow throttled 0.5 Mbps rates for the rest of the billing cycle in agony.<p>At that point I realized I was essentially paying for a 3 GB data plan (remember, no tethering provisioning was included or even could be added) under the auspices of an &#x27;unlimited&#x27; tier. I switched to mobile shared but that turned out to be a huge mistake for other reasons (among which was that corporate discount codes didn&#x27;t apply to the $30 phone fee on top of the bucket charge), and then shortly after that left for T-Mobile where I now have a real unlimited plan for less money. Not the full speed tiers + throttled data after that plan mind you, the actual unlimited plan.<p>What&#x27;s really disappointing is that it took the FTC until now to build a case or whatever legal burden is required to go after AT&amp;T for their elaborate bait-and-switch. This is years after the fact, and I wonder how much extra money AT&amp;T made as a result.
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adamfeldmanover 10 years ago
I&#x27;ve been on a (now grandfathered) &#x27;unlimited&#x27; data plan with AT&amp;T since 2008 (iPhone 3G &gt; 4S &gt; 5S). Can confirm the throttling, lately after 3GB of data usage in a billing period
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RankingMemberover 10 years ago
For people in the U.S.&#x2F;Canada looking for a provider who gives a shit and who live in an area with decent Sprint coverage, check out Ting. I&#x27;ve been using them for about 2 years now and they&#x27;ve been rock solid (I am in no way affiliated with them, I&#x27;m just that happy with them).<p>The closest reasonable thing to sending photocopies of your middle finger in their (Verizon&#x2F;AT&amp;T) &quot;business reply&quot; spam postal mailings is giving someone else who kicks ass your business (don&#x27;t do the photocopy thing, the people who have to open and transcribe those things don&#x27;t like Verizon&#x2F;AT&amp;T either).
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morganvachonover 10 years ago
So, I wonder if this is the first salvo in a war on all the major carriers who use the same &quot;unlimited but throttled&quot; marketing scheme? If AT&amp;T loses this one, will the FTC go after T-Mobile and Sprint, who also do this? (Verizon doesn&#x27;t offer unlimited data to new customers, but had kept it going for grandfathered customers, and backed off from plans to throttle them[1]).<p>[1] <a href="http:&#x2F;&#x2F;www.cnet.com&#x2F;news&#x2F;verizon-backs-off-on-plans-to-throttle-unlimited-data-users&#x2F;" rel="nofollow">http:&#x2F;&#x2F;www.cnet.com&#x2F;news&#x2F;verizon-backs-off-on-plans-to-throt...</a>
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jqmover 10 years ago
There is debate on the thread about whether or not low level AT&amp;T employees are scum...<p>I don&#x27;t claim to know, but a funny thing happened a few weeks ago. My girlfriends android phone was acting up and shutting off randomly. So she took it to the AT&amp;T store to have it reinstalled (I don&#x27;t know much about smartphones and didn&#x27;t want to play with it). So, in the middle of the day, I get an angry call from her accusing me of installing Linux on her smartphone (and why not? I install Linux on everything else...It must have been me!). The guy at the AT&amp;T store told her since I had installed Linux there was nothing he could do for the phone and couldn&#x27;t reinstall it nor repair it. I protested my innocence but she said the guy in the store had given her proof and she would show me that night. (I was actually a little curious as this was the first I had heard of Linux proper running on a stock android phone). So when the moment of proof came, she pulled up an android screen with the kernel version and there it was... at the bottom of the screen in bold white letters... &quot;SELinux status&quot;. Proof! I mean, it said Linux!<p>So maybe they aren&#x27;t evil, but that guy at least left me wondering about their general competency. I laughed for half an hour solid imagining all the Linux infected phones he must be seeing coming in.... Or more likely, he was just trying to sell her a new phone.
denzil_correaover 10 years ago
I hope this is the beginning of the end of Fair Usage Policies (FUP) masked as &quot;unlimited Internet&quot;. The best part of the release was the note<p>&gt; The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court.
dumbfounderover 10 years ago
I had the unlimited plan for several years and was shocked and outraged to find that they were throttling after I reached a certain limit.<p>So I switched to Sprint&#x27;s unlimited plan and now I can rest at ease that I have a consistent experience. My bandwidth is now throttled 100% of the time by the crappiness of their network.
us0rover 10 years ago
While this appears good, this is nothing more then a show. AT&amp;T will end up paying virtually nothing[1]. If you get angry when companies like Microsoft can go and seize domains, property and anything else in civil matters - this lovely agency has helped pave most of the way for them. The bulk of their cases come with Ex Parte Temporary Restraining Order&#x27;s and Asset Freezes[1].<p>What will likely be the most egregious offender with the highest amount of &quot;consumer damage&quot; (AT&amp;T) they don&#x27;t even use the word &quot;scam&quot; or &quot;fraud&quot; in the complaint or press release. AT&amp;T has already won. I doubt anyone there is losing any sleep over this.<p>[1] - <a href="http:&#x2F;&#x2F;www.ftc.gov&#x2F;enforcement&#x2F;cases-proceedings" rel="nofollow">http:&#x2F;&#x2F;www.ftc.gov&#x2F;enforcement&#x2F;cases-proceedings</a>
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twoodfinover 10 years ago
I don&#x27;t see how anybody wins from this complaint. AT&amp;T already no longer offers any unlimited plans to new customers, and the most likely outcome will be to no longer offer renewals of the existing grandfathered plans.<p>It&#x27;s not as if anyone on those plans using 5GB+ a month isn&#x27;t already aware of the throttling: AT&amp;T is pretty good about notifying you when you are close to or over the limit.<p>I guess a settlement might let some folks in the middle of their contact get out easier.<p>But personally, even considered as just a 5GB&#x2F;line plan, my grandfathered plan is cheaper than anything currently offered (almost even before you account for the $450&#x2F;line device subsidy!). Probably won&#x27;t be the case in two years when I&#x27;m up again, but for now I&#x27;m glad the FTC didn&#x27;t file this complaint a few months ago.
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sswanerover 10 years ago
I made the mistake of downloading over 20GB of music and files on my new iPhone 6. The phone has been almost useless since hitting that limit. So much for &quot;Unlimited Data&quot;.<p>But, I am waiting for a check for over $1300 as part of a class action settlement with AT&amp;T after being overfilled for service.
eyearequeover 10 years ago
I love seeing AT&amp;T getting this kind of attention from the FTC for their terrible, terrible, monopolistic and greedy tactics. Their goal is to squeeze every penny they possibly can out of their customers. Their service has always been subpar.<p>I really hope that this lawsuit costs AT&amp;T a lot of money; It needs to hurt in order to teach them a lesson.<p>One can only hope that we can someday have a competitive wireless market with 5+ options for consumers to choose from. That is when customer service will become real.
userbinatorover 10 years ago
I wonder if anyone would like clearly-advertised &quot;unlimited data, harmonic throttling&quot;:<p>First X amount of data at full speed<p>Second X amount of data at 1&#x2F;2 of full speed<p>Third X amount of data at 1&#x2F;3 of full speed<p>Fourth X amount of data at 1&#x2F;4 of full speed<p>etc...<p>(With perhaps prices based on what that X is, or the decrease in speed could be more gradual.)<p>This is clearly &quot;unlimited&quot; since you can transfer as much data as you want, it just takes a little longer for each additional amount (until the next billing period). :-)
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mrbillover 10 years ago
I&#x27;m on the $60-70&#x2F;month T-Mobile plan that gives me truly unlimited 4G data; no throttling. I might not use more than 2G a month most of the time, but if I need to use more, I don&#x27;t have to worry (such as when I had to go out of state when a family member had emergency surgery a couple of months ago).<p>I wouldn&#x27;t switch back to AT&amp;T as a wireless carrier even if someone paid me every month.
ozariusover 10 years ago
Can&#x27;t wait to send in the threatening email that i received from AT&amp;T stating explicitly that my &quot;unlimited&quot; bandwidth will be throttled because i happened to be in a high usage area. Seriously there should be a place where everyone who received such emails can post them en masse...
post_breakover 10 years ago
I left AT&amp;T because of this. My iPhone went dead data wise after 3GB of usage, on unlimited data plan. We went to arbitration and they let me out of my contract, and unlocked my phone. They clearly know they are ripping people off trying to force them to nickel and dime the tiered plans.
peterwwillisover 10 years ago
Do people actually think that wireless carriers have the bandwidth to handle everyone streaming HD at once? They throttle so there&#x27;s headroom for spikes in overly-saturated network segments. It&#x27;s not like they just don&#x27;t like it when you use their service.
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fadyover 10 years ago
I have an unlimited data plan as well and I am 100 percent positive that AT&amp;T throttles at 5 gigabytes and when they do its really bad, like .6 megabits per second down :(
oamoruwaover 10 years ago
AT&amp;T can&#x27;t be the only operator guilty of such throttling. A previous article was published about Verizon also considering implementing throttling data consumption.
wpaprockiover 10 years ago
I work for a telco reseller. We make our money by selling the same services as the big guys without being assholes about it. We make a lot of money.
mpg33over 10 years ago
At least you Americans have some choice. Here in Canada there are only 3 (nation-wide) carriers with virtually the same plans&#x2F;prices.
greyfoxover 10 years ago
arent these cell companies really misleading every customer by charging them for Minutes, SMS, AND Data, when really all that needs to be given to the customer is an ip address that one can call&#x2F;text&#x2F;email etc.? i&#x27;ve never understood why our phone numbers arent ip&#x27;s they seem to be a converging set of numbers at this rate anyways.
robert_nsuover 10 years ago
Here I thought I was being capped around 5gb. I didn&#x27;t ditch the &quot;unlimited&quot; data plan until late 2013.
lukasbover 10 years ago
Apart from a $10 settlement check, what&#x27;s likely to happen to grandfathered unlimited &#x2F; unthrottled plans?
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hernan6042over 10 years ago
This &#x27;unlimited&#x27; term is very misleading. Every connection that has a bandwidth cap will be tied and limited by that cap. ie. 10mb&#x2F;s is limited to 10mb&#x2F;s period. There is no such thing as &#x27;unlimited&#x27; unless of course the connection has no virtual cap, then that would be considered unlimited.<p>So every connection plan as we know is limited and never unlimited.<p>Thoughts?
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barceover 10 years ago
Sprint does the same thing but at 5GB. Just a data point from a former Sprint customer.
lewis_b_realover 10 years ago
And there is absolutely no meaningful way to hold them accountable.
davidholmesnycover 10 years ago
I dream one day we will all have 1 Gig per second up and down on our mobile phones and it will cost less than a gallon of milk. A man can dream can&#x27;t he lol .
cevarisover 10 years ago
Soooo, no throttling by ISP&#x27;s is next?
jrgiffordover 10 years ago
SURPRISE!