updated 04:50 pm EST, Thu March 10, 2011
Clearwire sued over false advertising claims
Internet provider Clearwire is facing a lawsuit filed by 15 of its subscribers over its controversial throttling of connection speeds. The plaintiffs said Clearwire isn't delivering the advertised high-speed Internet services it promises, and when unhappy customers leave, charges them early termination fees. The complaints began in the summer of last year, when users said home connection speeds were dropped as low as 256Kbps.
The complaint was filed earlier in March and is based on Clearwire's advertising claims. In it, the company promises a minimum speed of 1Mbps with all but two plans and no limits on data usage. The carrier also promised no throttling if users go over a certain quota in its promotional material either, the complaint read.
The complaint also hypothesized as to why Clearwire allegedly made false claims to customers. The plaintiffs believed Clearwire needed the money to grow out the network and eventually deliver the promised speeds.. Currently, though, it has too many users and not enough network capacity to accommodate them all. The carrier has well-publicized financial troubles and needs.
The 15 plaintiffs are seeking more to bring the lawsuit to a class-action level. [via ArsTechnica]