Verizon, AT&T, Sprint and T-Mobile have all gotten into hot water for throttling data speeds, but they're not the only offenders. The FTC is now levying a huge $40 million fine against TracFone for throttling customers who had purchased unlimited data.
TracFone is the largest prepaid cell service provider in the country and sold the phony plans under several different names including Straight Talk, Net10, Simple Mobile and Telcel America. The FTC is suing the company for selling monthly unlimited data plans and then throttling, or slowing down, data speeds by 60% to 90% when customers reached secret limits set by the company.
The FTC says TracFone varied its data limits, but generally slowed data service when a customer used 1 to 3 gigabytes, and suspended data service outright at 4 to 5 gigabytes.
If that wasn't bad enough, TracFone even canceled talk and text services for some customers who approached preset data limits.