FTC Comes Down on Mobile Providers for Broken Promises of ‘Unlimited Service’

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The Federal Trade Commission ruled that prepaid mobile phone service provider TracFone would have to pay $40 million for throttling down the speeds of customers who paid for unlimited data service Wednesday.

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

While the case was specific to TracFone, several other carriers who have been “throttling” the speeds of customers are put on notice.

AT&T and Verizon stopped offering unlimited data plans to new customers, although, many grandfathered customers still have those plans.

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