FTC v. AT&T Mobility, No. 15-16585 (9th Cir. 2016)Annotate this Case
The FTC filed suit against AT&T under section 5 of the Federal Trade Commission Act (FTA), 15 U.S.C. 45(a), taking issue with the adequacy of AT&T’s disclosures regarding its data throttling program. The district court denied AT&T's motion to dismiss and rejected it's view of the common carrier exemption. The court concluded, however, that the common carrier exemption in section 5 of the FTC Act carves out a group of entities based on their status as common carriers. Those entities are not covered by section 5 even as to non-common carrier activities. Because AT&T was a common carrier, it cannot be liable for the violations alleged by the FTC. Accordingly, the court reversed and remanded.
Court Description: Federal Trade Commission Act. The panel reversed the district court’s denial of AT&T Mobility LLC’s motion to dismiss, and remanded for an entry of an order of dismissal in an action brought by the Federal Trade Commission under section 5 of the FTC Act that took issue with the adequacy of AT&T’s disclosures regarding its data throttling plan, under which AT&T intentionally reduced the data speed of its customers with unlimited mobile data plans. Section 5 of the FTC Act contains an exemption for “common carriers subject to the Acts to regulate commerce.” 15 U.S.C. § 45(a)(2). The panel held that AT&T was excluded from the coverage of section 5 of the FTC Act, and FTC’s claims could not be maintained. Specifically, the panel held that, based on the language and structure of the FTC Act, the common carrier exception was a status-based exemption and that AT&T, as a common carrier, was not covered by section 5.
The court issued a subsequent related opinion or order on May 9, 2017.
The court issued a subsequent related opinion or order on February 26, 2018.