FTC rules against unlimited date with throttling

Ina Fried:

In a case that could have broad implications, the Federal Trade Commission on Wednesday ordered prepaid mobile provider TracFone to pay $40 million for slowing down the speeds of customers who had paid for unlimited data service.

While the case was specific to TracFone, a number of carriers still offering unlimited service have been slowing down, or throttling, the speeds of customers who use more than a certain amount of data. Both the FTC and Federal Communications Commission have taken a dim view of the practice.

“The issue here is simple: When you promise consumers ‘unlimited,’ that means unlimited,” said Jessica Rich, director of the FTC’s Bureau of Consumer Protection, in a statement Wednesday.