Watch CBS News

Appeals Court: FTC Can Punish Telecommunications Companies That Hurt Consumers

NEW YORK (AP) -- A U.S. appeals court says the Federal Trade Commission can police telecommunications companies like AT&T -- a ruling that's important because another agency is dropping its oversight with repeal of "net neutrality" rules governing customer access to apps and websites.

The case is over claims that AT&T misled smartphone customers in offering unlimited data plans, but slowing speeds for heavy users. An earlier ruling says the FTC lacks authority over AT&T because telecommunications companies are regulated by the Federal Communications Commission. On Monday, the 9th U.S. Circuit Court of Appeals said the FTC can indeed punish telecommunications companies for deceptive practices. The FTC still must prove that AT&T was deceptive.

After the FCC repealed net neutrality in December, the FTC and FCC said they would coordinate online consumer protection efforts.

© Copyright 2018 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.

EMERGENCY COMPONENT - LOCAL

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.