The Federal Communications Commission (FCC) is fining AT&T $100 million for misleading customers about its unlimited data plan , accusing the country’s second-largest cellular carrier of improperly slowing down Internet speeds for customers who had signed up for “unlimited” data plans.

FCC founded that when the users used up a certain amount of data watching movies or browsing the Web then AT&T “throttled” their Internet speeds so that they were much slower than normal.The commission says that it’s received thousands of complaints from consumers since AT&T’s policy went into effect in 2011. The FCC says that it found millions of people were affected, with affected subscribers on average receiving throttled service for 12 days per billing cycle.

By not properly disclosing the policy to consumers who thought they were getting “unlimited” data, the company violated the FCC’s rules on corporate transparency – FCC Chairman Tom Wheeler

“Consumers deserve to get what they pay for,”  Wheeler said. “Broadband providers must be upfront and transparent about the services they provide. The FCC will not stand idly by while consumers are deceived by misleading marketing materials and insufficient disclosure.”

Many of the users were subscribed to 4G which has a speed of 30 megabits per second That’s roughly 60 times faster than the speeds experienced when AT&T throttled subscribers, who were slowed to speeds equivalent to dial-up, according to a senior FCC official.

consumers are unlikely to receive any money from the fine, which will go instead to the U.S. Treasury

Yes you got that right if you are one of those unlucky user who subscribed for unlimited and got affected by this low speed problem then there will be no money from the fine for you all the fine will be given to US Treasury which is conformed by agency offical.

The FCC has specifically identified this practice as a legitimate and reasonable way to manage network resources for the benefit of all customers, and has known for years that all of the major carriers use it,We have been fully transparent with our customers, providing notice in multiple ways and going well beyond the FCC’s disclosure requirements

– AT&T

This is not the fist time, AT&T is also facing a lawsuit from the Federal Trade Commission over this same issue, which it still has to deal with.

Via : FCC