The Federal Trade Commission on Tuesday sued AT&T Mobility, alleging that the company misled its smart phone customers by promising them unlimited data, only to throttle their data speeds if they used too much.
In a suit filed in San Francisco federal court, the FTC said AT&T failed to adequately disclose what “unlimited” data really meant. That is, if customers used too much data in a billing cycle—in some markets, as little as two gigabytes of data—then AT&T drastically slowed their data speeds, to the point where common smart phone applications like web browsing, GPS navigation and streaming video became all but impossible.
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