NEW YORK (TheStreet) -- Shares of AT&T (T) are decreasing on Wednesday by 0.3% to $34.57 after the Federal Communications Commission said that it plans to fine the carrier $100 million for deceiving customers, slowing data speed, and not notifying them of the practice.
The FCC alleges that the company sold customers unlimited data plans then "capped data speeds for those customers after they used a set amount of data within a billing cycle," The Wall Street Journal reports.
"Consumers deserve to get what they pay for," FCC Chairman Tom Wheeler said. "Broadband providers must be upfront and transparent about the services they provide. The FCC will not stand idly by while consumers are deceived by misleading marketing materials and insufficient disclosure."
"We will vigorously dispute the FCC's assertions," an AT&T spokesman responded.
While the company has made billions of dollars off the practice, it will now have to deal with the proposed fine, which is the largest in FCC history, the Journal noted.
Separately, TheStreet Ratings team rates AT&T INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate AT&T INC (T) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity."