The U.S. Federal Communications Commission on Wednesday said it will levy a $100 million fine on AT&T for allegedly misleading consumers about the company’s unlimited mobile data plans.
In 2014, the FCC filed a lawsuit against the mobile communications company after it slowed internet speeds for customers who paid for unlimited plans. The FCC claimed that AT&T did not adequately explain the plans limitations to customers.
“Unlimited means unlimited,” FCC Enforcement Bureau Chief Travis LeBlanc said in a statement.
An AT&T spokesperson said the company “will vigorously dispute the FCC’s assertions,” adding that regulators “specifically identified this practice as a legitimate and reasonable way to manage network resources.”
In a public statement AT&T said, “We have been fully transparent with our customers, providing notice in multiple ways and going well beyond the FCC’s disclosure requirements.”
AT&T ditches its unlimited data plans in 2010, while allowing grandfathered customers to retain the unlimited data plans if they signed up before the end of the program. In 2011, AT&T began capping data speeds for unlimited data users. Users who consumed large amount of unlimited data witnessed speed capping for the remainder of their billing month, caps that were not mentioned in their original contract.
AT&T shares were down two cents at $34.65 in midday trading following the FTC announcement.