FTC settles with TracFone over data throttling

Discussion in 'The Howard Stern Show' started by dawg, Jan 28, 2015.

  1. dawg

    dawg In The Dog House Staff Member

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    All Wireless companies do this and it's about time they started paying the price for ripping off Americans.

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    TracFone will pay the Federal Trade Commission $40 million to settle charges that the prepaid mobile provider intentionally slowed the data speeds of heavy users.

    In a statement released Wednesday, the FTC says consumers with a Straight Talk, Net10, Simple Mobile, or Telcel America plan before January can claim a refund.

    The agency claims TracFone deceived customers with its prepaid unlimited plans, slowing down data speeds -- called "throttling" -- or cutting off customers who hit a fixed limit during a 30-day window.

    "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.

    The lawsuit is the latest in a string of settlements aimed at wireless providers accused of misleading consumers. Last month, the agency settled with T-Mobile for $90 million over bill "cramming," where customers are charged for third-party services without their consent. The FTC has also cracked down on unauthorized in-app purchases, targeting companies including Apple, Amazon and Google.

    http://www.usatoday.com/story/tech/2015/01/28/ftc-tracfone/22474085/
     
    Last edited: Jan 28, 2015
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  2. SouthernListen

    SouthernListen I'm here for an argument. No you're not. VIP

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    It's rare when they actually punish companies for the frauds they commit. Just about all do on some level.
     
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  3. JameGumb

    JameGumb We're all out of toner!

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    Sprint does it every day. I can even pin point the time they do it. One minute I can play a youtube vid. The next it takes forever to buffer.
     
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  4. wife is a whore

    wife is a whore Stripped of POTY for butthurting staff VIP

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    Same here. I used to listen to Tune-in Radio all day while driving. On the drive up the NJ Turnpike it worked fine while surfing the web. On the way home my shit would lock up. I'm not even a heavy data user over the course of a month. Rarely do I go over 1gb, and I have unlimited data.

    I also hate how I keep having to turn off the Connections Optimizer and shut Wifi off while I'm in Brooklyn. Go a block and a half and it locks up, because it is trying to switch wifi hotspots.
     
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  5. dawg

    dawg In The Dog House Staff Member

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    Their probably next in line for a hefty fine.
     
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  6. wife is a whore

    wife is a whore Stripped of POTY for butthurting staff VIP

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    They should be, with their $10 surcharge for "Premium Data".
     
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  7. OV

    OV Rapscallion

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    If you think about their mega sized revenues that keep on giving, $40 mil relatively speaking is like a spit in the ocean.
     
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  8. JameGumb

    JameGumb We're all out of toner!

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    Same thing happens to me with the wifi thing. Even if I turn it off it still attempts to connect to the nearest wifi spot and most of the time it's slower than data.
     
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  9. Imus O Sternsky

    Imus O Sternsky Well-Known Member

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    Sounds like the theory I make 500 million and I can piss on my fans
     
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  10. JameGumb

    JameGumb We're all out of toner!

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    I'm sure they'll eventually do away with unlimited data plans like Verizon did.
     
  11. wife is a whore

    wife is a whore Stripped of POTY for butthurting staff VIP

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    Did Verizon ax people grandfathered in on unlimited data?

    I don't use that much data currently, but I stick w/ Sprint thinking that in the future there will be more data consuming stuff to come down the pike. The day Sprint tells me that I no longer have unlimited data is the day I switch to AT&T. I can see an AT&T tower from my back yard, so I could ax my landline.
     
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  12. JameGumb

    JameGumb We're all out of toner!

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    No. But I think once their plans up they do. They actually tried to throttle grandfathered users but backed out of it from public backlash.

    Verizon I mean.