---
title: "Throttled: TracFone Enters $40 Million Settlement with FTC over “Unlimited” Plans"
date: 2015-02-05T16:45:11-05:00
author: Import Bot
canonical_url: "https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/throttled-tracfone-enters-40-million-settlement-with-ftc-over-unlimited-plans"
section: Blog Posts
---
# Throttled: TracFone Enters $40 Million Settlement with FTC over ​“Unlimited” Plans

  February 5, 2015

 

 

 

 

 

 

Last week, the FTC concluded a $40 million settlement with TracFone – the largest prepaid mobile provider in the U.S. – over allegations that the company throttled customers’ purportedly unlimited data plans. The FTC alleged that TracFone advertised $45 per month unlimited plans, but systematically throttled and/or suspended customers’ connections after they passed a certain usage threshold, in violation of Section 5 of the FTC Act, which prohibits ​“unfair and deceptive” trade practices.

The landmark settlement is indicative of vigorous enforcement by the FTC in the mobile broadband space. [Our](http://www.kelleydrye.com/publications/client_advisories/0951) advisory provides an analysis of the settlement and items of note for other companies considering similar claims or related business practices in the broadband space.

 

 **Tags:** [TracFone](https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/tags/tracfone)

 

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