FTC Sues AT&T For Throttling Customers With “Unlimited” Data Plans

The Federal Trade Commission brought down the hammer on AT&T on Tuesday for allegedly misleading more than 3.5 million smartphone users with promises of unlimited data plans.

The suit claims that AT&T failed to adequately disclose to customers that it would reduce data speeds if the user went over a certain amount of data use in a billing cycle. The practice, known as throttling, slows down things like web browsing, GPS navigation or watching streaming videos.

This is the second time AT&T has made headlines in the last few months, in October, the company agreed to pay over $100 million settlement to resolve allegations the company place unauthorized charges for third-party services on consumers’ mobile telephone bills.

ABC’s Scott Goldberg joined us to discuss.

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