FTC: Throttled unlimited data not unlimited; agency reaches $40 million settlement with TracFone

The FTC is cracking down on the use of the term "unlimited data," and this is what led TracFone Wireless to agree to a $40 million settlement with the agency. The company offers wireless service under various names like Straight Talk Wireless, Simple Mobile, Net10 Wireless, and Telcel America.



All of TracFone's operations offer unlimited talk, text and data plans. But some customers had their data speed throttled by 60% to 90% in the hopes that they would purchase a plan with a capped data allowance. According to the FTC, that's a big no-no. Some customers with unlimited service even had ...