AT&T, one of the leading telecom companies in the United States, has agreed to pay a $60 million settlement to resolve allegations that it failed to properly notify customers that their data speeds had been intentionally slowed, in a process also called throttling.
As a result, CNET tells us that former customers with unlimited data plans may be eligible for a payment from the company, with the deadline to file a claim for a share of the money approaching next month.
Throttling Affected 3.5 Million AT&T Customers
The allegations stem from a 2014 lawsuit filed by the US Federal Trade Commission, which claimed that at least 3.5 million AT&T unlimited plan customers had their data speeds slowed when they reached a monthly limit.
The FTC found that some network speeds have dropped by up to 90%, with users reporting that video streaming, web browsing, and even GPS navigation have become "difficult or nearly impossible to use."
While AT&T disputes the FTC's allegations, the company chose to settle "rather than continue with drawn-out litigation." Current subscribers received account credits as part of the settlement, and many former subscribers received refund checks.
Since then, AT&T has been attempting to distribute approximately $7 million to former customers whose contact information it did not have.
Are you qualified for the AT&T settlement?
If you were an AT&T customer with an unlimited data plan between Oct. 1, 2011, and June 30, 2015, and you experienced data throttling but did not receive a credit or check from AT&T as a result of the settlement, the FTC says you could be eligible for a payment.
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Current AT&T customers who should have already received a credit on their account, as well as former AT&T customers who have already received a check from AT&T, are not eligible.
How much will be refunded?
Individual customers will be paid based on how many people file valid claims, with payments made available through an online claim form set up by the FTC.
Current and former AT&T customers received between $10 and $23 in the first round of compensation, depending on where they lived.
How to Claim Refund
The FTC states that eligible users may submit an online claim in one of two ways. They can send an email to info@ATTDataThrottling.com or call 877-654-1982 for further information.
The claim submission is valid until May 18. To avoid potential interruptions on your end, you should submit it as soon as possible.
Biggest Case Settlement
Throttling data is common among telecom companies offering unlimited data plans.
Companies such as AT&T reduce data speeds for customers who use a certain amount of data per month, usually to avoid network congestion.
On the other hand, customers have consistently argued that carriers should not be allowed to reduce data speeds on unlimited plans because they paid for unlimited data usage.
The settlement with AT&T is one of the largest ever reached over data throttling practices, and it emphasizes the importance of properly notifying customers about service changes.
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