Design World

  • Home
  • Technologies
    • ELECTRONICS • ELECTRICAL
    • Fastening • joining
    • FLUID POWER
    • LINEAR MOTION
    • MOTION CONTROL
    • SENSORS
    • TEST & MEASUREMENT
    • Factory automation
    • Warehouse automation
    • DIGITAL TRANSFORMATION
  • Learn
    • Tech Toolboxes
    • Learning center
    • eBooks • Tech Tips
    • Podcasts
    • Videos
    • Webinars • general engineering
    • Webinars • Automated warehousing
    • Voices
  • LEAP Awards
  • 2025 Leadership
    • 2024 Winners
    • 2023 Winners
    • 2022 Winners
    • 2021 Winners
  • Design Guides
  • Resources
    • Subscribe
    • 3D Cad Models
      • PARTsolutions
      • TraceParts
    • Digital Issues
      • Design World
      • EE World
    • Educational Assets
    • Engineering diversity
    • Trends
  • Supplier Listings
  • Advertise
  • Subscribe

Appeals Court Drops FTC’s AT&T Data Throttling Lawsuit

By Diana Goovaerts | August 29, 2016

California’s Ninth Circuit Court of Appeals on Monday dismissed a Federal Trade Commission lawsuit that accused AT&T of deception in throttling data speeds for its unlimited customers.

In its 2014 lawsuit, the FTC alleged AT&T failed to adequately disclose its data throttling practices to customers and as a result engaged in “unfair or deceptive acts or practices” when it slowed data speeds for heavy users on its unlimited plans.

The FTC argued such a practice was barred under section 5 of the FTC Act, while AT&T claimed it was exempt from liability under that provision due to its status as a “common carrier.” AT&T previously filed a motion to dismiss the lawsuit, but that was denied by the district court.

Before the appeals court, AT&T argued its common carrier status under section 5 covers even non-common carrier activity. The FTC, on the other hand, argued the common carrier status should be an activity-based exemption that applies only to common carrier activities.

The appeals court on Monday sided with AT&T, concluding “based on the language and structure of the FTC Act, that the common carrier exception is a status-based exemption and that AT&T, as a common carrier, is not covered by section 5.”

With its opinion, the appeals court reversed the district court’s denial of the motion to dismiss and remanded the case for an order of dismissal.

In a statement to Reuters, the FTC said it was “disappointed” with the decision and is currently considering its options for moving forward.

AT&T’s current unlimited data plan – which is available to DirecTV and U-verse subscribers – caps high speed data for heavy users at 22 GB. But AT&T isn’t alone in offering an unlimited plan with limits.

Both T-Mobile and Sprint also throttle data on their unlimited plans past thresholds of 26 GB and 23 GB, respectively.

Verizon does not offer an unlimited plan.

You Might Also Like


Filed Under: Industry regulations + certifications

 

LEARNING CENTER

Design World Learning Center
“dw
EXPAND YOUR KNOWLEDGE AND STAY CONNECTED
Get the latest info on technologies, tools and strategies for Design Engineering Professionals.
Motor University

Design World Digital Edition

cover

Browse the most current issue of Design World and back issues in an easy to use high quality format. Clip, share and download with the leading design engineering magazine today.

EDABoard the Forum for Electronics

Top global problem solving EE forum covering Microcontrollers, DSP, Networking, Analog and Digital Design, RF, Power Electronics, PCB Routing and much more

EDABoard: Forum for electronics

Sponsored Content

  • Widening the scope for machine tool designers with FORTiS™ enclosed encoder
  • Sustainability, Innovation and Safety, Central to Our Approach
  • Why off-highway is the sweet spot for AC electrification technology
  • Looking to 2025: Past Success Guides Future Achievements
  • North American Companies Seek Stronger Ties with Italian OEMs
  • Adapt and Evolve
View More >>
Engineering Exchange

The Engineering Exchange is a global educational networking community for engineers.

Connect, share, and learn today »

Design World
  • About us
  • Contact
  • Manage your Design World Subscription
  • Subscribe
  • Design World Digital Network
  • Control Engineering
  • Consulting-Specifying Engineer
  • Plant Engineering
  • Engineering White Papers
  • Leap Awards

Copyright © 2025 WTWH Media LLC. All Rights Reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media
Privacy Policy | Advertising | About Us

Search Design World

  • Home
  • Technologies
    • ELECTRONICS • ELECTRICAL
    • Fastening • joining
    • FLUID POWER
    • LINEAR MOTION
    • MOTION CONTROL
    • SENSORS
    • TEST & MEASUREMENT
    • Factory automation
    • Warehouse automation
    • DIGITAL TRANSFORMATION
  • Learn
    • Tech Toolboxes
    • Learning center
    • eBooks • Tech Tips
    • Podcasts
    • Videos
    • Webinars • general engineering
    • Webinars • Automated warehousing
    • Voices
  • LEAP Awards
  • 2025 Leadership
    • 2024 Winners
    • 2023 Winners
    • 2022 Winners
    • 2021 Winners
  • Design Guides
  • Resources
    • Subscribe
    • 3D Cad Models
      • PARTsolutions
      • TraceParts
    • Digital Issues
      • Design World
      • EE World
    • Educational Assets
    • Engineering diversity
    • Trends
  • Supplier Listings
  • Advertise
  • Subscribe
We use cookies to personalize content and ads, to provide social media features, and to analyze our traffic. We share information about your use of our site with our social media, advertising, and analytics partners who may combine it with other information you’ve provided to them or that they’ve collected from your use of their services. You consent to our cookies if you continue to use this website.