Category Archives: Lawsuits

Judge Rules against AT&T in FTC Lawsuit

Back in October of 2014, the FTC sued AT&T for throttling their data plans. The reason is that AT&T offered unlimited data plans that were throttled once monthly data usage hit caps around 3G or 5G.

AT&T argued that its status as a common carrier would make it exempt from FTC jurisdiction. Federal Judge Edward Chen of District Court in California disagreed and decided against dismissing the lawsuit.

The main reason is that AT&T is only a common carrier for landline and mobile phone services. The mobile data services, at the time, did not fall into the common carrier category. AT&T tried to argue that since it was a common carrier the exemption should apply to all services rendered by the company.

Chen was not buying it. He stated that exemption only applies to common carriers when carrying out common carrier activities. The FTC did reclassify mobile data as a common carrier service this February; however, it was not a common carrier service at the time of the lawsuit.

People at STX Entertainment have learned that the FTC now seeks to refund millions of customers with the resulting lawsuit. How much money they will receive from the lawsuit and how much will be paid back to consumers is still entirely up in the air.