Partial FTC refunds head to AT&T customers as part of throttling settlement

AT&T FTC refunds roverview:

• Who: Nearly $6.3 million in FTC refunds will be issued to customers who had unlimited plans allegedly subjected to AT&T throttling.
• Why: The partial refunds will be issued as part of a 2019 AT&T settlement with the Federal Trade Commission over allegations AT&T promised customers unlimited data plans but slowed down their connectivity after a certain amount of data was used in a billing cycle.
• Where: The settlement documents were filed in California federal court.

The Federal Trade Commission (FTC) will issue close to $6.3 million in partial FTC refunds to AT&T customers who signed up for unlimited plans as part of an AT&T settlement reached in 2019.

The AT&T throttling settlement resolves claims the telecommunications company misled consumers by failing to adequately notify them that unlimited data plans would be subjected to slower connections after a certain amount of data use was reached in a billing cycle.

The AT&T throttling allegedly affected the functionality of mobile data applications, rendering commonly used services like video streaming and web browsing to become “difficult or nearly impossible to use,” the FTC said in a statement.

AT&T has already paid approximately $52 million of the $60 million AT&T settlement, Law360 reports. The payment was in the form of bill credits to current AT&T customers or refund checks to former customers. A new round of FTC refunds will be issued soon; consumers who filed a claim should keep an eye on their mailboxes or PayPal accounts because they may soon receive FTC refunds from the AT&T settlement.

AT&T throttling on unlimited data plans began in 2011, FTC alleged

The FTC initially filed the AT&T throttling lawsuit in 2014 over allegations AT&T began throttling data speeds in 2011 for customers with unlimited data plans after they used as little as 2GB of data during a billing period. More than 3.5 million customers were affected by AT&T throttling, according to the FTC.

AT&T vigorously fought against the FTC lawsuit, arguing the agency was overstepping its authority in bringing the suit.

The 9th U.S. Circuit Court of Appeals ultimately determined the FTC had jurisdiction and could challenge AT&T’s alleged data throttling practices. AT&T said it would not appeal the decision to the U.S. Supreme Court.

AT&T says it ceased the alleged data throttling practices long before the FTC approved the settlement in 2019.

The latest FTC refunds from the AT&T settlement will be sent to consumers who filed a valid claim but have not yet received payment. Checks should be cashed within 90 days and PayPal payments must be redeemed within 30 days, the FTC says.

The claims period for the AT&T settlement closed May 18, 2023.

Did you pay for an unlimited data plan that was affected by AT&T throttling? Tell us about your experience in the comments.

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