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AT&T Reaches A Settlement With FTC Over A 2014 Lawsuit

A federal court ruling on Friday stated that the Federal Trust Commission (FTC) and AT&T have reached an agreement over a 2014 lawsuit that alleged AT&T of deliberately slowing down data that it sent to wireless devices. As per the San Francisco’s district court, both parties had requested for a 90-day stay to allow FTC the time to review the settlement. The two parties had reached a settlement on August 2 but the amount of settlement was not yet disclosed.

The FTC had alleged that AT&T did not inform the consumers that it would slow the speed down of the internet connection provided with the unlimited plans. In simpler terms, AT&T did not inform its consumers about the data capping it had put on unlimited plans. The lawsuit was filed back in 2014 and post investigations, the two reached an agreement on August 2. The lawsuit was even closed once in 2017 on the basis of AT&T being a common provider and that meant it was not under FTC jurisdiction. The results of reviews by the FTC commissioners are expected to be due on November 21. Even FCC had filed a case for the same against AT&T and had expressed an intent to fine the telecom company with a fine of USD 100 million. Around 3.5 million American consumers were affected by AT&T action as speeds dropped by around 90 per cent.

AT&T was in the news for another negative recently as around 20,000 of its workers went on strike over poor contract negotiations. The employees were mainly from the Southeast and were part of the Communications Workers of America union. AT&T did sent their members to hold talks with the union but the union locals stated that they were people who had no power to make any decision within the company.

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