ftc logoThere are many carriers around the world, not just in the US, who advertises that they offer their customers unlimited data. To a certain extent that is true, but the catch is usually after you’ve exceed a particular amount of data, your speeds will be throttled, so while technically you get unlimited data, the slow speeds make it near impossible to use it at all.

Advertising

That being said over in the US, the FTC does not seem too happy about carriers who advertise themselves as offering unlimited data and have recently slapped prepaid mobile provider TracFone with a $40 million fine for slowing down the speeds of their customers who believed that they had subscribed to the carrier’s unlimited data plan.

According to the FTC’s director of their Bureau of Consumer Protection, Jessica Rich, “The issue here is simple: When you promise consumers ‘unlimited,’ that means unlimited.” Rich later clarified that the issue was not so much about throttling speeds but rather false advertising. “This case is about false advertising. It’s not about throttling. We’re not challenging throttling in and of itself.”

Rich also stated that as long as the caveats of the carrier’s plans are made clear and have been disclosed properly to customers, these carriers can continue their practice. “If it’s clearly disclosed, if a company advertises unlimited, but very clearly discloses their practices with regard to throttling we would not challenge that action.”

Filed in Cellphones. Read more about and .

Related Articles on Ubergizmo