by Emily Lammers
The Federal Commission hit yet another lawsuit this Tuesday on cellular provider, AT&T. The lawsuit centers on AT&T misleading customers with unlimited data plans by slowing connection speeds after a certain amount of data is reached. The FTC issued the lawsuit saying that AT&T failed to adequately disclose that the customers data speeds were to decrease by as much as 90%.
AT&T is fighting back saying that the allegations are unsubstantiated and that they have disclosed their policy of slowing speeds to customers. This is not the first time AT&T has faced these sorts of allegations. Only weeks ago the company paid $105 million in settlement charges after slipping in unauthorized charges on customers wireless bills. AT&T has continued to deny all allegations with the current lawsuit and others filled again them. In a statement AT&T held, “It’s baffling as to why the FTC would choose to take this action against a company that, like all major wireless providers, manages its network resources to provide the best possible service to all customers.” This may not be the best tactic when this isn’t their first public reputation hit in recent weeks. As a company they may want to take a more sympathetic front in order to save customers from switching to other providers such as Verizon.