A California U.S. District Court has rejected AT&T's motion to dismiss the Federal Trade Commission's lawsuit over AT&T's marketing of its mobile data services, which the FTC said was deceptive. AT&T said it will appeal the court's decision.
AT&T had argued that it is exempt because the FTC lacks jurisdiction due to the common-carrier exemption. The court concluded otherwise, denying the motion and saying that the exemption only applies when the entity is a common carrier and is engaged in a common-carrier activity.
At the time of the FTC complaint, the court pointed out, broadband data service was not a common-carrier service – and won't be until the Federal Communications Commission's Title II reclassification order is finalized.