FCC Reaches $48m Settlement With T-Mobile Over ‘Unlimited’ Data PlansOctober 19, 2016
Today, the Federal Communications Commission announced that T-Mobile will pay a fine and provide benefits to consumers totaling at least $48 million as part of a settlement regarding whether the company adequately disclosed speed and data restrictions for its “unlimited” data plan subscribers. The FCC’s 2010 Open Internet rules, which require broadband providers to give accurate and sufficient information to consumers about their internet services.
As part of the settlement, T-Mobile is required to spend at least $5 million to address the “homework gap” in low-income school districts.
The following can be attributed to John Gasparini, Policy Fellow at Public Knowledge:
“We applaud the FCC’s continued enforcement against anti-consumer practices. This follows last week’s strong action against abusive billing practices engaged in by Comcast. Throughout their tenure, Travis LeBlanc & Chairman Wheeler have been appropriately aggressive in pursuing the FCC's enforcement activities. We hope and expect that the next FCC will continue with this strong record of protecting consumers.
“This action, and others like it, demonstrate the importance of continued FCC oversight over the communications marketplace and in particular the transparency obligations which are critical to the FCC’s net neutrality rules. Consumers deserve to know what they’re paying for, and to get the services advertised – in this case, an unlimited plan advertised as such should have actually been unlimited. It wasn’t, and the FCC is holding T-Mobile appropriately accountable for their actions.
“We look forward to continued action from the FCC in this and other important areas of consumer protection and enforcement.”