AT&T settles, agreeing to pay 60 million dollars to its customers, after a class action lawsuits revealed it was slowing down data speeds of their internet clients.
Customers of “unlimited data”plans had their internet speeds significantly throttled by the media giant.
“AT&T promised unlimited data—without qualification—and failed to deliver on that promise,” FTC Bureau of Consumer Protection Director Andrew Smith said in the announcement. “While it seems obvious, it bears repeating that Internet providers must tell people about any restrictions on the speed or amount of data promised.”arstechnica.com
AT&T’s current and former customers who were affected by the throttling won’t have to do anything to get their refunds, according to the FTC. The commission said:
The $60 million paid by AT&T as part of the settlement will be deposited into a fund that the company will use to provide partial refunds to both current and former customers who had originally signed up for unlimited plans prior to 2011 but were throttled by AT&T. Affected consumers will not be required to submit a claim for the refunds. Current AT&T customers will automatically receive a credit to their bills while former customers will receive checks for the refund amount they are owed.
Refunds within 90 days of court approval
AT&T must pay the $60 million within seven days after the settlement is approved by the US District Court for the Northern District of California. AT&T would have to identify each eligible consumer within 30 days and give bill credits and refund checks to existing and former customers within 90 days.arstechnica.com
AT&T did not deny any wrong doing.