T-Mobile to Pay $48M Over Misleading 'Unlimited' Data Plans

...

T-Mobile will pay a fine and offer benefits to customers totaling at least $48 million for failing to adequately explain the restrictions on its so-called "unlimited" data plans, the Federal Communication Commission announced Wednesday.

As part of the settlement, T-Mobile will have to pay a $7.5 million fine, provide $35.5 million in benefits to affected customers, and at least $5 million in services and equipment to US schools. Eligible subscribers will be offered discounts on data and accessories.

The FCC probe found that T-Mobile slows data speeds when T-Mobile and MetroPCS customers on "unlimited" plans exceed a monthly threshold — and some customers are not privy to this.

"Company advertisements and other disclosures may have led unlimited data plan customers to expect that they were buying better and faster service than what they received," a violation of the Commission's 2010 Open Internet transparency rules, the FCC said. The agency said it has received complaints from T-Mobile and MetroPCS customers who felt misled about the lack of transparency.

On Twitter Wednesday, T-Mobile CEO John Legere didn't seem too concerned. "Good settlement with FCC today," he wrote, adding that the company "believes more info is best for customers."

If you're a T-Mobile customer, expect to receive a notice about the benefits you can get as part of this settlement by Dec. 15. That includes 4GB of additional data and 20 percent off accessories. Going forward, T-Mobile will be required to provide more transparency about the restrictions of its "unlimited" plans.

The FCC specifically took issue with T-Mobile's "Top 3 Percent Policy" to "de-prioritize" its heaviest data users during times of network congestion. Consumers complained that the policy rendered their data services unusable for hours each day and substantially limited their access to data.

"The bureau believes that the company failed to adequately inform its 'unlimited' data plan customers that their data would be slowed at times if they used more than 17 GB in a given month," the FCC said. Now, T-Mobile will have to more clearly explain the Top 3 Percent Policy and who may be affected by it.

The punishment could have been worse. In June 2015, the commission proposed a $100 million fine against AT&T for failing to adequately explain to customers of its "unlimited" data plans just how much their service would be throttled after a certain amount of data use.

Categories
APPLICATIONS
0 Comment

Leave a Reply

Captcha image


RELATED BY

  • 5300c769af79e

    Smartphone Owners Move to Block Ads

    9 billion smartphone users—prevent ads from displaying on their handsets, a 90 percent year-over-year increase.Approximately 408 million people are using mobile ad-blocking browsers, according to PageFair.
  • 5300c769af79e

    Google 'Prompt' Simplifies Two-Factor Authentication

    Rolling out gradually to all Android and iOS users, the new feature lets folks log into Google apps—Gmail, Calendar, Maps, etc.Just press "No, deny sign-in" or "Yes, allow sign-in"—no numbers, letters, or characters required.
  • 5300c769af79e

    Add Spotify Tunes to Your Tinder Profile

    A picture is worth a thousand words, but let's not discount the role that music can play in wooing that special someone.That's why Tinder is turning up the volume with Spotify.
  • 5300c769af79e

    Download Apps For Free: Education

    Talking Together (Junior) is a family communication and entertainment  game for families with children for many The aim of the game is not to win, but to understand each other better, talk to each other, have fun and tell stories.{{FEATURES}} # COOL Education tool for children # 280 questions to improve observation and communication skills # Cool Fun # 40 different topics to talk on 5 maps # Original hand-drawn graphics # A lot of fun with singing and story telling # Recording of your stories {Requires Android 4.