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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
I had two straight talk numbers for over a year and my data was “throttled” cut down to e bar or what ever within a week and half. I work 40 hrs so I know I’m not using this data and I don’t do Facebook or use any data apps. I filed my claim butbhavent had any response. My friend filed one on a phone he had for maybe 8 months and they said he would get 391 back. I wanna know what two phones for a year is gonna be!
Did you ever receive any response after you filed a complaint?
Straighttalk is the worst, with Cricket a close second and next is AT&T. Am going to get The Smartjack and get rid of my cell. Getting the cheapest cell for seniors. Do not need any more.
T-Mobile does this same thing when you buy a prepaid phone. I finally got so fed up I had to buy another phone from them that would work on their regular non-prepaid service JUST so that I COULD ESCAPE THE HORRIBLE THROTTLING.
lol I have been with tracfone inc with straight talk and net 10 for 6 years and every month my data either gets throttled down or terminated
I did not know a thing tell I got a text From a friend that is why my phone is acting so bad.
I am tired of being put on hold for 3 hours just to ask a question to fix my phone but they refuse to fix it and I am tired of talking to foreign people that you cant understand and if anything don’t get fixed I am going to stop using straight talk phone and tell other people the truth of what I am going through and tell that straight talk is money hungry I am tired of it i been with straight talk for 5 years and it has not got any better since then.
I had one phone they deactivated bc of data usage! Multiple others that they throttled. In no way whatsoever can i remember what those phone numbers were. Wth do i do about that?
I have had straight talk for years and always after about 10days get the message that my speeds will be reduced. I also can have full 3g signal and still get Internet connection. It’s so annoying .
So what if you cant remember all of the phone numbers that you had with straight talk does that mean less of a refund just wondering if theres a way threw straight talk to get all your old numbers but I doubt they would give you the old numbers cause they would be screwing there selfs lol
I emailed them and asked for mine. They said since they recycle the numbers they were “unable to process my request “. You would think they’d be able to find the numbers associated with my acct still!