FTC rules that throttled data plans no longer count as unlimited data

The FTC has ruled against TracFone in a case involving their “unlimited data,” forcing the prepaid company to pay out $40 million to customers that were mislead about just how unlimited TracFone’s data actually is. Like tons of other carriers, TracFone offers an unlimited data plan that’s throttled after a certain cap is hit. The FTC isn’t particularly fond of those kinds of plans, which they’ve mentioned in the past.

According to the FTC, data speeds were slowed down between 1 and 3 GB and were sometimes completely cut off once customers hit the 5 GB limit. The FTC might have been more lenient if TracFone wasn’t cutting data off completely and just sticking to throttling, but it’s a tough call knowing that the FTC dislikes throttled data plans anyway.

It’s unclear what kind of impact this will have on other carriers that offer the same types of data plans, but we’ll see in the coming weeks.

source: re/code

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