April 12, 2024 at 12:04PM
The FTC is distributing $6.3 million in refunds to 267,000 former AT&T Wireless customers due to a data throttling settlement. AT&T was accused of not disclosing limitations on “unlimited” data plans, affecting tasks like web browsing and video streaming. Current consumers received $52 million in compensation earlier, with former customers now being included. Be cautious of phishing scams related to the refund process.
Based on the meeting notes, here are the key takeaways:
1. The Federal Trade Commission (FTC) is sending $6,300,000 in partial refunds to 267,000 former AT&T Wireless customers as part of a data throttling settlement in 2019.
2. This action is the result of a 2014 lawsuit by the FTC claiming that AT&T did not fully disclose the terms of its “unlimited data plans” to customers, particularly regarding data speed reduction after hitting a usage threshold.
3. This unexpected throttling impacted customers’ ability to perform basic tasks, which rendered their data subscription for the remainder of the billing cycle worthless.
4. In 2020, AT&T compensated current consumers with $52,000,000 out of a $60 million settlement through bill credits and refunds, but former customers had not received any share of the settlement.
5. The FTC is now compensating 267,000 former customers who did not receive a refund but submitted a valid claim. Compensation will be via checks (212.9k) and PayPal payments (54.8k) and should be cashed or redeemed within 90 and 30 days, respectively.
6. As part of the 2019 settlement, AT&T was prohibited from making claims about the speed or volume of mobile data without disclosing applicable restrictions.
7. FTC has set up a FAQ page for more information about the refund process.
8. There is an elevated risk of phishing and scam attempts for about 51 million AT&T customers due to a recent data breach and information leak.
These are the key points from the meeting notes regarding the FTC’s settlement with AT&T and the associated refund process and risks.