Clearwire Data Throttling Class Action Lawsuit

Clearwire promises customers that its high-speed wireless internet service is “fast” and “always on,” but purposefully slows its users’ connection speed during peak internet hours because it cannot accommodate the high volume of traffic, says a federal class action lawsuit filed in Seattle, Washington.

According to the Clearwire class action lawsuit, Clearwire Corporation throttles its connection speed at times when internet demand is at its greatest, beginning at approximately 7:30 p.m. and ending at about 1:00 a.m. to 2:00 a.m., because it “lacks sufficient cell towers to transmit all of the data generated.” In order to cope with this demand, the lawsuit states, Clearwire places hidden “caps” on users’ data. “Once a user has exceeded this undisclosed ‘cap,’ Clearwire drastically reduces that user’s internet speed during peak hours of usage,” the class action states.

If users attempt to cancel their service because they’re not getting the service they paid for, Clearwire collects an early termination or re-stocking fee, even though the “contract” is not really a contract at all and the full terms of the contract are never shown to customers before they subscribe to Clearwire’s service, the class action lawsuit says.

“The contract between Clearwire and its customers is simply that the customers will pay for, and Clearwire will provide, ‘unlimited’ internet usage at certain speeds, depending on the speed and payment plan selected in Clearwire’s stores, kiosks or online,” the lawsuit states. “Despite not showing its terms to customers, Clearwire refuses to allow users to cancel their service without paying the unconscionable fees it claims it is owed under this ‘contract’…Although Clearwire breached its contract with its customers, Clearwire insists on the payment of this ETF when customers realize they are not getting what they bargained for.’”

The Clearwire internet throttling class action lawsuit is very similar to the Comcast P2P data throttling class action lawsuit settlement we reported on in April. That data throttling settlement gave class members up to $16 in refunds.

The Clearwire throttling class action lawsuit is seeking damages for class members, an injunction preventing Clearwire from continuing its alleged deceptive marketing campaign and further charging early termination fees, and other relief.

A copy of the Clearwire High-Speed Internet Data Throttling Class Action Lawsuit can be read here.