January 28, 2015

TracFone, the largest prepaid mobile provider in the U.S., has agreed to pay $40 million to the FTC to settle charges that it deceived millions of consumers with hollow promises of “unlimited” data service. The FTC’s complaint alleges TracFone advertised prepaid monthly mobile plans for about $45 per month with “unlimited” data under various brands, including Straight Talk, Net10, Simple Mobile, and Telcel America. But 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. FTC

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