Federal Trade Commission Takes Action Against Companies Promising “Unlimited” Data Plans


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.

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Sam Dunis
Sam comes from Edinburgh and grew up with his mother and step-dad. His father left the country when he learnt he was going to be a father. Sam never had the opportunity to see him and still wonders what he looks like. School wasn’t his thing, he would rather spend sometime with his friends, play rugby and chat girls up. Sam used to help his step dad, a plumber, during summertime. After doing it for several years, he realized he could work with his father and hopefully take over the family business when his step-father would retire. Sam spends most of his time off taking care of his mother, training with the local rugby team. Sam doesn’t have any girlfriend at the moment. He is therefore going out every weekends.