Tracfone Wireless Fined $40 Million To Settle Agency Charges
Mobile service providers which have been advertising that they provide “unlimited” data plans to their customers better lookout. The Federal regulators are cracking down on them because it has been seen that the companies promise unlimited data only to reduce the speed of data transmission if customers reach a certain limit on their data use. Slow connections lead to difficulty in browsing the internet or in downloading. The Federal Trade Commission said on Wednesday that TracFone Wireless, which is the largest prepaid mobile provider in America, will have to pay $40 million to settle agency charges that it deceived consumers
Tracfone Wireless Had Backed Down On Claims Advertised By Them
According to the agency, TracFone Wireless had given out ads in television, radio and print a about unlimited data plans. Some of these ads were targeted at narrowly targeted audiences’ like Spanish-speaking consumers. However, after a 30-day period, when the data use exceeded certain limits, the speed of internet was slowed down drastically. Consumers who paid for the plans can now file claims for refunds. TracFone took out a statement that said, “We have worked with the F.T.C. to reach an amicable settlement and we have no further comment at this time.”
AT&T Mobility Was Embroiled In Earlier Mobile Data Related Case
TracFone is of course not the first mobile service providing company that has earned the wrath of the Federal Trade Commission. Last year, AT&T Mobility was charged with similar charges and the case is still going on. Jessica L. Rich, Director of the agency’s Bureau of Consumer Protection said that when the companies promise the consumers unlimited data usage, then the ‘unlimited’ clause has to be fulfilled otherwise strict actions will be taken.