Prepaid mobile provider TracFone agreed to pay $40 million to the Federal Trade Commission to settle charges that the company deceived consumers about "unlimited" data service.
The FTC's complaint alleged that TracFone, which advertised "unlimited" data under several brands "throttled" — slowed or cut off — consumers' mobile data after they used more than certain amounts in a 30-day period.
"When you promise consumers 'unlimited,' that means unlimited," FTC's Bureau of Consumer Protection Director Jessica Rich said in a news release. "This settlement means that Straight Talk, Net10, Simple Mobile, and Telcel America customers will be able to get money back from the company for services the company promised but didn't deliver."
Consumers who had a Straight Talk, Net10, Simple Mobile, or Telcel America unlimited plan before January can visit www.ftc.gov/prepaidphones to file a claim. Refunds will be paid to consumers whose data service was "throttled" slowed or cut off.
In addition to the settlement, TracFone is prohibited from making deceptive advertising claims about its mobile data plans.
For More Information:
