What does “unlimited data” mean when talking about a mobile phone plan?  

The National Advertising Division (NAD) of BBBNP provided an answer when it found that Charter substantiated its advertising claims for Spectrum Mobile “Unlimited” data plans. NAD's system of voluntary self-regulation continues to shape standards and adjudicate disputes within the telecommunications industry. 

Verizon challenged Charter's use of the term “unlimited data” because, it argued, data plans are subject to throttling and deprioritization practices that can impact the speeds experienced by customers. In response, Charter explained that its Unlimited and Unlimited Plus plans are not subject to data caps – there is no limit on the quantity of data delivered to Charter’s unlimited customers. Although there is a usage threshold above which a small subset of customers experience reduced speeds, the evidence also demonstrated that those customers continue to use data at a greater rate than typical users.

NAD found that Charter’s evidence demonstrated that data continues to be delivered to customers who reach usage thresholds and that Charter's 3G speeds allow Spectrum users to access and to continue to use data.  As a result, NAD upheld Charter's claim and found that the evidence provided support for the claim that Spectrum Mobile customers have access to “unlimited” data.  NAD did recommend, however, that high-speed data limitations be disclosed in close proximity to "unlimited" data claims.  

NAD's decision is important in holding that “unlimited data” refers to the quantity of data.  Data usage thresholds that result in reduced speeds are not necessarily limitations on data, as long as data can still be used and customers can continue to engage in typical online activities. 

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