Federal Trade Commission v. AT & T Mobility LLC

ORDER DENYING DEFENDANT’S MOTION TO DISMISS

(Docket No. 29)

The Federal Trade Commission (“FTC”) has filed suit against Defendant AT & T Mobility LLC (“AT & T”), asserting that AT & T has engaged in acts or practices, in connection with the marketing of mobile data services, 1 that violate 15 U.S.C. § 45 (a). Section 45(a), which is part of the Federal Trade Commission Act of 1914 (“FTC Act”), provides in relevant part: “The Commission is hereby empowered and directed to prevent persons, partnerships, or corporations, except ... common carriers subject to the Acts to regulate commerce ..., from using ... unfair or deceptive acts or practices in or affecting commerce.” 15 U.S.C. § 45 (a)(2).

Currently pending before the Court is AT & T’s motion to dismiss. AT & T argues that it cannot be held liable for a violation of § 45(a) because it enjoys an exemption under the statute as a “common carrier[] subject to the Acts to regulate commerce.” Id. Having considered the parties’ briefs and accompanying submissions, the Court hereby DENIES AT & T’s motion.

I. FACTUAL & PROCEDURAL BACKGROUND

In its complaint, the FTC alleges as follows.

“[AT & T] is a major retailer of smart-phones…