TracFone Pays $40 Million to Settle FTC Allegations It Didn't Deliver on Promises of Unlimited Data
TracFone, the nation’s largest prepaid mobile provider, agreed to pay $40 million to settle FTC allegations that it didn’t deliver on promises to customers who bought “unlimited” data service. The complaint alleged TracFone has advertised since 2009 prepaid monthly mobile…
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plans for about $45 per month offering “unlimited” data under various brands -- including Straight Talk, Net10, Simple Mobile and Telcel America, said an FTC Wednesday news release. “Despite emphasizing unlimited data in its advertisements, TracFone drastically slowed or cut off consumers’ mobile data after they used more than certain fixed limits in a 30-day period,” the FTC said. “The issue here is simple: when you promise consumers ‘unlimited,’ that means unlimited,” said Jessica Rich, director of the FTC Consumer Protection Bureau. The agency's proposed order was filed in U.S. District Court in San Francisco. TracFone didn’t comment.