AT&T throttled 'unlimited' data plans for years — $60M FTC settlement

AT&T Mobility promised 'unlimited' data to millions of smartphone customers — and, from 2011, slowed their speeds once they used a set amount in a billing cycle. The lower speed could be as little as 2 gigabytes of data use in a month. The FTC said the throttling went so far that common applications such as web browsing and video streaming became difficult or nearly impossible to use, and it affected more than 3.5 million customers as of October 2014.

The FTC's 2014 lawsuit alleged AT&T began the practice despite 'unequivocal promises of unlimited data' to customers who signed up for those plans. The throttling was not adequately disclosed, and the FTC said AT&T reduced speeds to the point of making everyday apps unusable for people who had been sold an unlimited experience.

In November 2019 AT&T agreed to pay $60 million to settle the litigation. The money funded partial refunds to current and former customers who signed up for unlimited plans before 2011 and were throttled. AT&T was also barred from making claims about data speed or amounts — including 'unlimited' — without prominently disclosing material restrictions.