By Dave Sebastian
AT&T Inc. (T) agreed to pay $60 million to settle the Federal Trade Commission's allegations that the wireless provider reduced customers' data speeds while charging them for unlimited data plans.
The commission had filed a complaint in 2014 accusing the company of not adequately disclosing to the customers with the data plan that it would reduce data speeds after reaching a certain amount of data use during a billing cycle.
The settlement will be deposited into a fund that AT&T will use to partially refund current and former customers who had originally signed up for unlimited plans prior to 2011 but whose data speeds were throttled by AT&T, the FTC said.
AT&T began throttling data speeds in 2011 while promising unlimited data for its customers after they used as little as 2 gigabytes during a billing cycle, affecting more than 3.5 million customers as of October 2014, the FTC said.
As part of the settlement, the FTC prohibits AT&T from marketing its speed or amount of mobile data without including clear caveats on the restrictions to those services.