Get All Access for $5/mo

AT&T Braces for $100 Million Fine Over 'Unlimited' Data Plans The FCC is charging AT&T with not properly informing customers that it would slow data speeds on unlimited plans if data caps were exceeded.

By Laura Entis

Opinions expressed by Entrepreneur contributors are their own.

AT&T will be slapped with a $100 million courtesy of the Federal Communications Commission over allegations that it failed to inform customers that their "unlimited" data plans would be slowed if they exceeded a certain amount of data within a billing cycle.

"Unlimited means unlimited," Travis LeBlanc, chief of the FCC Enforcement Bureau, said in a news release. "As today's action demonstrates, the commission is committed to holding accountable those broadband providers who fail to be fully transparent about data limits."

While AT&T no longer offers unlimited data policies, it allows existing customers with unlimited plans to renew them. However, in 2011 the telecommunications corporation implemented a throttling policy that slowed data speeds on "unlimited" plans after customers exceeded a data cap.

Related: T-Mobile Accused of Billing Customers for 'Bogus Charges'

While AT&T noted the policy change in 2011, the FCC alleges that its impact – i.e. capped speeds were significantly slower than normal network speeds – was not sufficiently conveyed to customers and thus violated the 2010 Open Internet Transparency Rule. "Consumers deserve to get what they pay for," said FCC chairman Tom Wheeler. "Broadband providers must be upfront and transparent about the services they provide."

In response, AT&T said it had given sufficient notice to customers when it capped data speeds in 2011 and that it will "vigorously dispute" the fine. "We have been fully transparent with our customers, providing notice in multiple ways, and going well beyond the FCC's disclosure requirements," the company said in a statement.

Since 2011, the FCC said millions of AT&T customers have been affected, and that it has received "thousands of complaints from AT&T's unlimited data plan customers stating that they were surprised and felt misled by AT&T's policy of intentionally reducing their speeds."

Related: FTC Sues AT&T for 'Deceptive' Data Throttling

Laura Entis is a reporter for Fortune.com's Venture section.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

The Side Hustle He Started in His College Apartment Turned Into a $70,000-a-Month Income Stream — Then Earned Nearly $2 Million Last Year

Kyle Morrand and his college roommates loved playing retro video games — and the pastime would help launch his career.

Making a Change

Learn All of Rosetta Stone's Languages for $152

A lifetime subscription is nearly $250 off for a limited time.

Leadership

How His Personal Battle With Cancer Inspired This Founder's Solution for Patient Care

On this episode of "The Founder CEO," Michael O'Neil, founder and CEO of GetWellNetwork, discusses his inspiring journey as a leader and the transformative role of AI in healthcare.

Marketing

5 SEO Hacks to Help You Rank Fast

Discover the best SEO hacks you can use to rank fast and avoid waiting for months to see results.

Business News

Homeowners in These 10 States Pay the Most in 'Hidden' Upkeep Costs

Hidden home costs pile on top of mortgage payments.

Starting a Business

Inside the Exclusive Private Club Devoted to Food, Wine and the Arts

Barrett Wissman breaks down the passions and partnerships behind his latest venture Domus Artium Reserve.