When you say unlimited, but don't give the party what they paid for..the
ability to connect on the internet, you are deceiving the public.
Currently there are class action suits against other companies doing the
exact same thing. It's illegal!!
There have been lawsuits filed against companies for capping unlimited services, however none of them have been successful in these cases since capping unlimited data plans is not illegal as determined by courts and the FCC who regulates wireless/internet providers. Here's a good detailed example-
However, companies have gotten in trouble for not transparently disclosing the terms and conditions aka 'fine print' of offerings, as that can fall into the realm of false advertising/deceptive contract procedures. That's why advertisements display fine print info regarding restrictions/limitations, and why the terms and conditions are layed out on websites, and in the provided customer contracts.
It's always the best idea to check the terms of every type of offering from every type of company. Not only with internet providers offerring unlimited services (since ALL of them have set caps/policy restrictions, both the we wireless and wired ones). The same applies to offerrings such as 'Nationwide' plans, which list restrictions since there are areas in the nation without coverage, or a promo for a 'Free' phone that could require a trade-in or service time or price plan commitment. Even when going out to a restaurant that has 'All you can Eat' that can cut off customer's after operating hours when the kitchen's closed even if a patron still wanted another plate of food.
I guess you haven't seen this yet, eh?
I have one better. Another company is facing the same thing, but they're
facing millions of people: the public whom have filled a class action suit
against that particular company. Can you figure out which one and what will
occur if the court doesn't find in their favor? I'll give you two guesses
and only one counts. They will lose thousands of customers and millions of
dollars because those unhappy clients have vowed to leave the service
behind. Can you imagine what will occur if that happens with Verizon?
Hmm... wouldn't that be interesting. I wonder if anyone you're speaking to,
right now, has the ability to get that started. Can you fathom how many
millions will fly out the window, one way or another?
Oh yes I have seen news on that lawsuit also. That type of case is exactly the scenario type I mentioned that could occur and proceed. As the link you posted states, the FTC is suing AT&T accusing them of failing to adequately disclose its data throttling practices to consumers, hence violating consumer protection rights through deceptive practices. It's not a lawsuit alleging the fact that At&t applies data caps or throttles data speed, they are aware all carriers implement that practice, and that issue had already been settled as within service provider network management rights. In order try to prevent data caps from being implemented the FCC would have to pass regulations making that practice illegal. That scenario wouldn't happen of course though, as they've been reducing network regulations, like with Net Neutrality rules.
The FTC does certainly have a case regarding protecting consumers by ensuring companies are properly disclosing terms and conditions. If I had to guess it could very well end up with the same result as the last such lawsuit, when T-Mobile was fined $48 million for failing to properly disclose the limitations and restrictions of their unlimited plan-
Definitely a good possibility of a loss of revenue in the millions with a government fine. It's not too likely to cause an actual measurable loss of customers however based on history of previous lawsuits and fines as the carriers continue to grow and grow despite successful or unsuccessful lawsuits.
Taking a look at the customer complaints on any of the service provider sites they're all the same. Customers that do follow through and actually end service with their current provider in reality are just going to switch to a new provider. So, for example if a customer cancels their Verizon service due to dissatisfaction with a bill date change they're just going to switch to At&t who also changes bill cycle dates. Or if a customer cancels their service with T-Mobile for having data caps they're just going to switch to Sprint who also has data caps, or any other potential reason.
Unless people being switching to smoke signals or tin cans and string instead when cancelling service with a provider there isn't much of an affect on carriers, or a change for customers due to very little actual differences with offerrings or policies and procedures