It can get aggravating to a user who buys an "unlimited" data service for a mobile unit only to find that there are limitations and that the advertising pitch was deceptive. In the case of TracFone this led to class-action claims alleging deceptive business practices. The company has settled one of those claims for $40 million to be paid back to affected customers, including residents of California who purchased an unlimited plan after 2009.
The settled case was filed by the Federal Trade Commission against TracFone, and its fictitious name brands of Straight Talk, Net 10, Simple Mobile and Telcel America. The government agency accused TracFone of violations of federal provisions prohibiting deceptive marketing. These services would advertise unlimited prepaid data plans but when the customer approached a certain level of use, his or her access would be throttled or cut off.
Persons believing that they may be victims of the scheme can go to a special FTC website to check on eligibility. Someone who is unsure may nonetheless apply and get an answer on whether he or she is covered. The eligibility will apply to persons paying for the service prior to Jan. 2015 and who were cut off or throttled. The term throttled apparently refers to the practice of substantially slowing down the person's data transmissions.
The funds are to be turned over immediately and TracFone will not seek return of any funds. The funds may be used toward settlement of numerous private class action suits filed in California and other states. None of the money, however, can be applied toward legal fees, litigation expenses, court costs or incentive payments to class representatives. That in effect means that TracFone must still put out additional funds to settle the private suits that have been filed. It's a common phenomenon to see government-sponsored class actions filed alongside private actions based on the same basic set of facts alleging deceptive business practices or consumer fraud of some sort.
Source: consumerist.com, "TracFone To Refund $40 Million To Customers For Deceptive "Unlimited" Data Claims", Chris Morran, Jan. 28,. 2015
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