AT&T fined $100 Million for Improperly Slowing Data Speeds

KE4EST · Jun 17, 2015

Well this is something I have suspected for a long time.

http://www.engadget.com/2015/06/17/att-faces-100-million-fine-for-quietly-throttling/

mikew · Jun 17, 2015

So it's more about their not saying anything than it is about them doing it. Expect another 1/2% "Tax" to cover this one for them.

Frank Jr. · Jun 17, 2015

Don't fine the company, that just causes customer rates to go up. Impose hefty personal fines on the top brass and the principle stockholders and that crap would stop.

harshness · Jun 18, 2015

mikew said:
So it's more about their not saying anything than it is about them doing it. Expect another 1/2% "Tax" to cover this one for them.

The term you were looking for is "Recovery Fee".

harshness · Jun 18, 2015

Frank Jr. said:
Impose hefty personal fines on the top brass and the principle stockholders and that crap would stop.

That pretty much defines the attraction of incorporation.

I think the companies should be required to issue personal apologies to their customers along with a refund for services not rendered.

mike123abc · Jun 18, 2015

Maybe it was just me, but I did not have any trouble seeing the "unlimited" as being 5GB LTE on their web site.

mikew · Jun 18, 2015

mike123abc said:
Maybe it was just me, but I did not have any trouble seeing the "unlimited" as being 5GB LTE on their web site.

While the verbiage may be there now, it was not clearly stated when it was initially employed.

dangue · Jun 18, 2015

mikew said:
While the verbiage may be there now, it was not clearly stated when it was initially employed.

When I signed up for unlimited 3G service at $30/month (and I stress the 3G part since they refused to let me use the slower $20/month 2G data plan with my iPhone 3G) there was no limit. I've received the throttling threat text twice, but to my knowledge have never been throttled. If they did so, I would certainly complain vociferously since what I added was unlimited 3G data.

RONZ · Jun 18, 2015

They also need to add many many towers

DishSubLA · Jun 18, 2015

harshness said:
That pretty much defines the attraction of incorporation.

I think the companies should be required to issue personal apologies to their customers along with a refund for services not rendered.

Or how about the Japanese way: make a formal apology, bow one's head, and resign because the Board holds the CEO responsible and is showing him the door for the "mistake" of his decisions and bad public image of the company and the money it may cost in fines.

Frank Jr. · Jun 18, 2015

harshness said:
That pretty much defines the attraction of incorporation.

I think the companies should be required to issue personal apologies to their customers along with a refund for services not rendered.

I understand that incorporation protects personal assets against claims from creditors or lawsuits. But maybe governmental fines should be allowed. As far as apologies to be considered genuine they would have to actually feel remorse for their actions. Getting in their back pocket would do that.

harshness · Jun 19, 2015

DishSubLA said:
Or how about the Japanese way: make a formal apology, bow one's head, and resign because the Board holds the CEO responsible and is showing him the door for the "mistake" of his decisions and bad public image of the company and the money it may cost in fines.

Like many American companies, the only image that they're worried about is their image in the eyes of the stockholders and Wall Street. Honor doesn't play into that image as much as it should.

The assertion that such transgressions can be laid at the feet of individuals is difficult to justify.

jevans64 · Jun 20, 2015

If this was a 3rd world dictatorship, I'd say public execution by firing squad would be in order but, alas, we live in a democracy.

Jimbo · Jun 20, 2015

DishSubLA said:
Or how about the Japanese way: make a formal apology, bow one's head, and resign because the Board holds the CEO responsible and is showing him the door for the "mistake" of his decisions and bad public image of the company and the money it may cost in fines.

With a multiple Million dollar severance package.

Jimbo · Jun 20, 2015

Here's wondering if the 100 Million fine will be given to those other companies that have done this type of thing as well ?

They have all throttled speeds.

nsafreak · Jul 6, 2015

Jimbo said:
Here's wondering if the 100 Million fine will be given to those other companies that have done this type of thing as well ?

They have all throttled speeds.

They might although I haven't heard any news about it as of yet. Frankly I'm still disappointed at the tiny amount of this fine. Just for reference in the quarter ending in October of last year AT&T posted a profit of 33 billion dollars. Essentially this fine amounts to 4 days worth of profit from AT&T which in the long term of things really isn't that much.

Jimbo · Jul 7, 2015

nsafreak said:
They might although I haven't heard any news about it as of yet. Frankly I'm still disappointed at the tiny amount of this fine. Just for reference in the quarter ending in October of last year AT&T posted a profit of 33 billion dollars. Essentially this fine amounts to 4 days worth of profit from AT&T which in the long term of things really isn't that much.

I'm sorry you feel a 100 Million fine is small.

Still waiting to see others fined equally.

RONZ · Jul 7, 2015

My issue with AT&T is most of their cell service is bad. When you call you get some story that is not true

socalpanman · Jul 20, 2015

The government is fining the $100M. Consumers injured are getting nothing. This is about revenue enhancement for a Federal agency and nothing about consumer protection.
Consumers just got screwed twice. Bureaucrats get a pay day on top of their high paying tax supported salaries and the Big Corporation will pass the cost on to the consumer.

AT&T fined $100 Million for Improperly Slowing Data Speeds

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