Exterior of an AT&T store in Bethlehem, Georgia, United States - 2015/11/13 (Photo : Getty Images/John Greim)
The US Court of Appeals in California has dismissed a lawsuit on August 29 filed by the Federal Trade Commission (FTC) accusing AT&T Inc. for deceiving consumers. The telecommunications conglomerate has been accused of slowing down internet speeds of users having unlimited mobile data plan after consuming certain levels of data.
FTC has filed the lawsuit in 2014. The appeal court for the ninth circuit has directed a lower court dismissing the lawsuit related to data throttling. Notably mentioning, despite winning the verdict in its favor, AT&T may still have to embrace monetary penalty from the Federal Communications Council (FCC), Reuters reported.
In the lawsuit, FTC has accused AT&T for the failure to inform its unlimited data plan subscribers on slower internet speeds in case of higher usage. The consumer rights body alleges for up to 90 percent reduction of internet speed in such instances.
The second largest wireless carrier in the US has filed multiple motions on several grounds seeking dismissal of the lawsuit. In its verdict, the appeal court also directs for applying the judgment in all cases pending with the lower courts. The court acknowledges AT&T's claim for operating as a 'common carrier' enjoying exemption from informing data plan consumers about possible throttling, Android Headlines reported.
The fair usage policy for internet data allows carriers to throttle consumers with higher consumptions during peak hours to free up network resources. Besides AT&T, other operators also practice throttling in different forms. T-Mobile, for an instance, degrades a consumer in the priority list after monthly usage of 23 GB. The degradation eventually leads to a reduced speed during the peak hours or within an area of higher data traffic.
Wireless carrier AT&T has won verdict from the appeal court in California filed by FTC in 2014. FCC has sued the telecommunication giant for deceiving data plan consumers with higher usage. However, the appeal court verdict by no mean offers immunization against FTC's attempt for imposing a monetary penalty.
YouTube Video: The unseen about AT&T
