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This settlement is closed!
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On Jan. 28, a settlement was reached in the FTC TracFone lawsuit, meaning TracFone Wireless Inc. will pay $40 million to their consumers to resolve claims that the company falsely promoted their “unlimited” data plans only to allegedly slash data transfer speeds when customers had exceeded certain data limits.
The Federal Trade Commission (FTC) filed this lawsuit against TracFone for allegedly misleading consumers about the exact nature of the advertised $45 per month TracFone unlimited data plans offered by various TracFone brands, which include Straight Talk, Net10, Simple Mobile, and Telcel America. According to the FTC TracFone lawsuit, the company would allow consumers to purchase the “unlimited” data plan, but later reduce or completely cut off the mobile data plan when a consumer exceeded fixed data limits during a 30 day period. This business practice is known as “throttling.”
The FTC TracFone lawsuit alleges that until 2013, consumers were unware of TracFone’s data “throttling” practice, but even that disclosure was hidden among TracFone fine print or even on the backside of a TracFone mobile phone’s packaging — places that made it unlikely a consumer would see the data throttling disclosure.
The FTC further alleges that TracFone and its participating brands have employed this data throttling practice since 2009 and would reportedly reduce a consumers mobile phone service anywhere from 60 to 90 percent. The data throttling usually began to occur when a TracFone customer used one to three gigabytes of data. If a customer used four or five gigabytes, the company would allegedly suspend the data services. When a consumer directly complained to TracFone about the throttling practice, they were finally warned about the consequences of “excessive data usage” by a TracFone prerecorded message.
This is not the first time the FTC has gone after a phone provider for unfair and misleading data plans. In October of last year, the FTC sued AT&T for similar alleged throttling data practices, which the company failed to properly disclose to its consumers. This case was later settled, with AT&T paying $105 million to consumers.
This FTC lawsuit is also not the first time TracFone has been sued for false advertising regarding its unlimited data plan. In 2013, a throttling class action lawsuit was filed against Wal-Mart and TracFone for falsely advertising Straight Talk cellphone plans as “unlimited,” when in fact the company would reduce or terminate an user’s mobile plan if they went over certain data limits. This TracFone class action lawsuit demonstrates the FTC’s claim that the company has been employing their data “throttling” strategy since 2009.
In the recent FTC TracFone lawsuit and subsequent refund agreement, the agency claims that there exists company internal documents demonstrating that the data throttling practices served no technical purpose, like reducing network data congestion; rather, TracFone employed throttling in order cut the cost of providing unlimited mobile data services.
Who’s Eligible
You are considered eligible for an FTC TracFone refund if you purchased a Straight Talk, Net10, Simple Mobile or Telcel America wireless service plan that was advertised to include “unlimited” data within the U.S. between July 24, 2009, and Dec. 31, 2014, and you had your data usage slowed, suspended, or had all phone services terminated by TracFone before your service plans’ expiration date.
Potential Award
Varies
Your refund FTC TracFone Refund payment will depend on three factors:
- How many eligible consumers file claims,
- When you were a customer, and
- How your cell phone service was affected.
Proof of Purchase
Download and mail a complete Claim Form to the FTC TracFone settlement administrator or complete and submit a Claim Form online.
Claim Form Deadline
6/19/2015
Case Name
Federal Trade Commission v. Tracfone Wireless Inc., Case No. 3:15-cv-00392, in the U.S. District Court for the Northern District of California.
Final Hearing
N/A
Settlement Website
Claims Administrator
Prepaid Phone Refund
Settlement Administrator
PO Box 2011
Chanhassen, MN 55317-2011
1 (855) 312-3327
Class Counsel
LIEFF CABRASER HEIMANN & BERNSTEIN LLP
HATTIS LAW
Defense Counsel
CARLTON FIELDS
SIDLEY AUSTIN LLP
UPDATE: The TracFone class action settlement received final approval on July 2, 2015.
UPDATE 2: According to the settlement administrator, the Tracfone class action settlement will become effective on Aug. 1, 2015 and checks will be mailed by Oct. 20, 2015.
UPDATE 3: Settlement checks were mailed out to Class Members starting on Mar. 22, 2016 through Mar. 29, 2016. According to the settlement administrator, Class Members must cash their refund checks no later than July 20, 2016.
UPDATE 4: On Mar. 26, 2016, Top Class Actions readers have started receiving settlement checks! If you filed a claim for the TracFone “unlimited” data class action settlement, keep an eye on your mailbox because checks are on the way!
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62 thoughts onFTC TracFone Class Action Settlement
Well Ive been a Straight Talk customer since 2010. I tried to file a claim after 4 years of data throttle but it seems the claim website isnt working.
I kept getting throttled after 1-2 GBs and my data plan became pretty much unusable for anything other than calls or txts. Tried to contact customer support, but never got a relevant answer. Always some BS automated response or just an apology with no means to a solution.. After a while I just gave up and started using my phone a lot less. I dont care so much for getting any money back, but fixing the service so I no longer get throttled would be a huge improvement. And maybe also improving customer service a bit so we can actually get people who at least ATTEMPT to look into and/or fix problems.
I’ve been with straight talk since 2009 and have always bought the $45 cards and also have my high speed taken away a week after I put card on my phone, so is this suppose to keep happening cause just got the text from straight talk saying my high speed data ran out already just put this card on March 12th and now it’s only march 23rd anything I can do?
I have had straight talk since April 2012, and I have to buy the unlimited card, and have never been able to hardly get the internet, and when I call them I get no help what so ever so I flat gave up
I have a straight talk that only allows the 45 dollar card n close to my 30 days I can’t access internet unless I’m on WiFi n I also am unable to send any attachments with my text messages when this happens its so annoying n when I call straight talk to talk to them I get someone I cannot understand so does anyone have any advise for me I just now filed a claim but that doesn’t help me right now
Ask straight talk for APN settings you will have to put them in manually
I have had Straight Talk service since June 2010. Once I added my iPhone 4s in their BYOP program in 2012, Straight Talk has systematically throttled my data speeds to unusable levels. This would occur even after less than 1GB of data download. I called Straight Talk’s customer service to complain each time they did it. I was advised by a Straight Talk rep that it was AT&T that was throttling my speeds which I knew wasn’t the truth. I filed a complaint with the BBB and the FTC.
Been with net 10 for about 5 or 6 years, Three differ phones and TracFone ate up my minutes so quick. For Linda D did you register your phone on the website?, your number would be there.
I was with Simple Mobile for many years. There unlimited data plan was all a scam that’s why I left them
Since 2009 I have had many tracfon and net 10 cell phones. They were junk!! I went thru several of them. I don’t remember the phone numbers. So what am I suspose to do??? Can’t they just go by mailing address? That would be better.
I am on the “SAFELINK” program with Tracfone. They have sent me FOUR cell phones that are either defective, or have not had the accurate minutes nor expiration dates for service on them.
I am tired of speaking with the Phillipine employees. I requested they “RE-ACTIVATE” my original phone, but they are unwilling or unable to do that.
Any recourse?
Sincerely,
Judy Jackson
Fort Lauderdale, Florida USA
Philippine employees??? nice… Anyway, since you do not pay for your service your refund is 0. Redirect your question to a site that handles your inquiry (not this one)
Judy report this to the BBB,FTC, and FCC. Many have had the same complaint many pay for additional minutes.There is an BBB redbox on this company.Note many elderly and disabled have literally gone weeks without working phones but the company has received their reimbursement also contact your Congress and Senate representatives.Good luck this company never should have had its contract renewed.
I am on the phone with them now and I see what you mean. I am already not a fan of outsourcing because these other companies dont have the same standards we have for business and or ethics but right now the one I am speaking to is just plan out rude and has me on hold to speak to a manager just because I didnt tell her the exact reason I wanted to speak to a manager. I wanted to speak to a manager because she is rude and told me do I know that I am calling for a free phone so what do I expect? How inappropiate. I will be changing companies immediately. When they gave me the choice between Safelink or other companies I should have chosen the other company.