FTC suit against AT&T throttling practices tossed out by appeals court

The Federal Trade Commission has lost a fight over mobile data throttling against AT&T.

This two-year-old case stemmed over the FTC’s accusation that the carrier needed to inform the commission before slowing down the data speeds of customers using excessive amounts of it on a grandfathered unlimited plan. The agency said that such deceptive practices are prohibited under the Federal Trade Commission Act.

The Ninth Circuit court of appeals, however, ordered a lower court to dismiss the lawsuit. AT&T’s argument for throttling was that the Act allowed common carriers to do so. The FTC has yet to decide on appealing the dismissal.

The Federal Communications Commission is proposing to penalize AT&T up to $100 million for not informing consumers of the practice, a penalty the company is fighting against.

Source: Reuters
Via: Phone Scoop

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Jules Wang
Jules Wang is News Editor for Pocketnow and one of the hosts of the Pocketnow Weekly Podcast. He came onto the team in 2014 as an intern editing and producing videos and the podcast while he was studying journalism at Emerson College. He graduated the year after and entered into his current position at Pocketnow, full-time.