T-Mobile Settles with FCC for $48M Over Misleading Unlimited Data Plan

T-Mobile has reached a settlement with the Federal Communications Commission (FCC) for $48 million. The settlement comes after allegations that the wireless operator misled consumers about its “unlimited” data plan. The FCC’s investigation found that T-Mobile did not clearly disclose the speed and data restrictions on its unlimited data plan, leading to complaints from customers who were unaware that their data would be slowed to an unusable speed after using 17 gigabytes in a month, despite being subscribed to an unlimited plan.

Violation of FCC’s Guidelines

T-Mobile’s practice of “de-prioritizing” heavy data users during network congestion was deemed unclear to consumers and a violation of the FCC’s 2010 Open Internet order. The order requires internet service providers to provide accurate and sufficient information about their services. Travis LeBlanc, FCC Enforcement Bureau Chief, stated that consumers should not have to guess whether so-called “unlimited” data plans include key restrictions such as speed constraints, data caps, and other limitations.

T-Mobile’s Second Penalty

This is not the first time the FCC has penalized a wireless carrier for misrepresenting its unlimited data plans. In 2015, AT&T was fined $100 million for a similar practice. The FCC aims to ensure consumers receive the services they pay for and has taken action against other internet service providers as well. Last week, Comcast was fined $2.3 million for billing customers for services they never ordered.

Settlement Details

Under the terms of the settlement, T-Mobile will clarify its policy and pay a $7.5 million fine to the government. Additionally, T-Mobile will provide $35.5 million in “consumer benefits” to its customers, including discounts for accessories and extra data. Eligible T-Mobile and MetroPCS customers will receive notice about these benefits by December 15, 2016.

Bridging the “Homework Gap”

In an effort to bridge the “homework gap,” T-Mobile will also contribute $5 million. The funds will provide free devices, such as tablets, to low-income school districts, allowing students to complete their homework at home. T-Mobile will also offer reduced-cost mobile broadband to these devices for the schools, at no cost to the students or their families. This initiative will start in October 2017 and enroll up to 80,000 students over four years.

T-Mobile’s Response

Although T-Mobile has not admitted to intentionally misleading customers, CEO John Legere expressed optimism about the settlement. He tweeted, “Good settlement with FCC today. @TMobile believes more info is best for customers,” and added, “Glad we could help schools with this solution as well.”

This settlement serves as a reminder that consumers should be provided with clear and accurate information about the services they are paying for. At Blog Hồng, we believe in transparent communication, ensuring our readers are well-informed. For more articles like this, visit Blog Hồng.