AT&T Hit With $100 Million Fine for 'Unlimited' Data Plans
The Federal Communications Commission said Wednesday that the company misled consumers into buying plans they believed would give them unlimited ability to send and receive data, including Web browsing, GPS navigation and streaming videos. But the FCC said that once the consumer reached a certain level, that data would be slowed down significantly, at speeds lower than advertised. AT&T (T) said it would "vigorously dispute" the fine, which is the largest proposed in FCC history. "The FCC has specifically identified this practice as a legitimate and reasonable way to manage network resources for the benefit of all customers, and has known for years that all of the major carriers use it," the company said in a statement released to reporters. "We have been fully transparent with our customers, providing notice in multiple ways and going well beyond the FCC's disclosure requirements." If AT&T can provide evidence that the FCC allegations are wrong, the fine could be reduced. But FCC officials said they were sure that AT&T was profiting off the deceptive advertising. "Unlimited means unlimited," said Travis LeBlanc, the FCC enforcement bureau chief.
