The settlement will be placed in holdings to partial refunds for current and past customers who saw data speeds throttled after hitting an unadvertised data cap, reports Reuters. Specifically, the settlement applies to subscribers who committed to unlimited plans prior to 2011.
FTC director Bureau of Consumer Protection Andrew Smith in a statement suggested the second-largest U.S. carrier by subscribers purposely misled customers when it implemented the strategy designed to save bandwidth, reports Reuters.
“While it seems obvious, it bears repeating that internet providers must tell people about any restrictions on the speed or amount of data promised,” Smith said.
