The Federal Trade Commission (FTC) has announced the distribution of $6.3 million in partial refunds to 267,000 former AT&T Wireless customers, marking a significant step towards rectifying past grievances related to data throttling. This action stems from a 2014 lawsuit by the FTC, which alleged that AT&T had failed to fully disclose the terms of its “unlimited data plans” to customers, particularly regarding the significant reduction in data speeds after reaching a specific consumption threshold. The unexpected throttling severely impacted customers’ ability to perform basic online tasks, prompting the FTC to intervene and secure compensation for affected individuals.
In addition to the monetary refunds, the settlement also imposes stringent restrictions on AT&T’s future advertising and marketing practices related to mobile data services. AT&T is now prohibited from making any claims about the speed or volume of mobile data, including terms like “unlimited,” without transparently disclosing any applicable restrictions. These disclosures must be clearly presented to customers on the AT&T website and should not be buried in fine print or obscured behind hyperlinks, ensuring that consumers are fully informed about the terms of their service agreements.
The FTC has taken proactive steps to inform eligible customers about the refund process through various channels, including a dedicated FAQ page. However, amidst this initiative, consumers are urged to remain vigilant against potential phishing attempts and scams targeting individuals seeking refunds. With phishing actors and scammers likely to exploit the situation, customers should exercise caution when responding to emails, SMS messages, or calls requesting personal information under the guise of facilitating refund payments.
Moreover, the recent data breach suffered by AT&T, resulting in the leakage of information belonging to approximately 51 million customers, has further elevated the risk of fraudulent activities. In light of this breach, customers are advised to remain vigilant and take necessary precautions to safeguard their personal information from potential exploitation by malicious actors.
