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Release date 10/28/2014
WASHINGTON The Federal Trade Commission today filed a complaint against AT&T, alleging that the company misled smartphone customers by charging them for unlimited data plans while the company slowed down their data speeds by as much as 90 percent. The FTC said it worked closely with the Federal Communications Commission on the action.
Consumers Union, the advocacy arm of Consumer Reports, said the action is a win for consumers and a blow against the practice of “throttling,” or reducing, data speeds.
Delara Derakhshani, policy counsel for Consumers Union, said, “Consumers have been complaining about throttling for years. We’re glad the feds are going after companies that are ripping people off. As the FTC said, unlimited means unlimited. If you charge someone for an unlimited data plan and then slow down their speeds, that sounds deceptive to us. The government says some people saw their data speeds slowed down so dramatically they couldn’t use their smartphones for basic things like web browsing.”
Derakhshani said, “It looks like AT&T was trying to push people into more expensive plans. To add insult to injury, if you cancelled your contract after you were throttled, you could get hit with early termination fees. AT&T may argue it was transparent about these practices, but clearly the government disagrees, and so do we.”
Media Contact:
David Butler, Consumers Union, 202.462.6262 or dbutler@consumer.org
Consumer Reports is a nonprofit membership organization that works side by side with consumers to create a fairer, safer, and healthier world. For 80 years, CR has provided evidence-based product testing and ratings, rigorous research, hard-hitting investigative journalism, public education, and steadfast policy action on behalf of consumers’ interests. Unconstrained by advertising or other commercial influences, CR has exposed landmark public health and safety issues and strives to be a catalyst for pro-consumer changes in the marketplace. From championing responsible auto safety standards, to winning food and water protections, to enhancing healthcare quality, to fighting back against predatory lenders in the financial markets, Consumer Reports has always been on the front lines, raising the voices of consumers.
© 2014 Consumer Reports. The material above is intended for legitimate news entities only; it may not be used for advertising or promotional purposes. Consumer Reports® is an expert, independent, nonprofit organization whose mission is to work side by side with consumers to create a fairer, safer, and healthier world. We accept no advertising and pay for all the products we test. We are not beholden to any commercial interest. Our income is derived from the sale of Consumer Reports® magazine, ConsumerReports.org® and our other publications and information products, services, fees, and noncommercial contributions and grants. Our Ratings and reports are intended solely for the use of our readers. Neither the Ratings nor the reports may be used in advertising or for any other commercial purpose without our prior written permission. Consumer Reports will take all steps open to it to prevent unauthorized commercial use of its content and trademarks.
Consumer Reports is a nonprofit membership organization that works side by side with consumers to create a fairer, safer, and healthier world. For 80 years, CR has provided evidence-based product testing and ratings, rigorous research, hard-hitting investigative journalism, public education, and steadfast policy action on behalf of consumers’ interests. Unconstrained by advertising or other commercial influences, CR has exposed landmark public health and safety issues and strives to be a catalyst for pro-consumer changes in the marketplace. From championing responsible auto safety standards, to winning food and water protections, to enhancing healthcare quality, to fighting back against predatory lenders in the financial markets, Consumer Reports has always been on the front lines, raising the voices of consumers.
© 2014 Consumer Reports. The material above is intended for legitimate news entities only; it may not be used for advertising or promotional purposes. Consumer Reports® is an expert, independent, nonprofit organization whose mission is to work side by side with consumers to create a fairer, safer, and healthier world. We accept no advertising and pay for all the products we test. We are not beholden to any commercial interest. Our income is derived from the sale of Consumer Reports® magazine, ConsumerReports.org® and our other publications and information products, services, fees, and noncommercial contributions and grants. Our Ratings and reports are intended solely for the use of our readers. Neither the Ratings nor the reports may be used in advertising or for any other commercial purpose without our prior written permission. Consumer Reports will take all steps open to it to prevent unauthorized commercial use of its content and trademarks.