T-Mobile Says FTC Charges 'Without Merit'
T-Mobile CEO John Legere responded publicly to complaints filed against it by both the Federal Trade Commission and Federal Communications Commission today. Legere called the allegations "unfounded and without merit." Legere countered that T-Mobile has worked proactively to stop third-party companies from fraudulently charging its customers. He further explained how the company ceased allowing premium SMS services altogether, and set up the refund program last year. "We believe [the third-party] providers should be held accountable, and the FTC's lawsuit seeking to hold T-Mobile responsible for their acts is not only factually and legally unfounded, but also misdirected." The FTC and FCC allege T-Mobile allowed the unwanted premium service charges to continue for months despite evidence customers didn't subscribe to them. The government believes T-Mobile knowingly bilked consumers out of tens of millions of dollars.
FTC Drops Cram-Hammer On T-Mobile
The Federal Trade Commission today filed a complaint regarding T-Mobile's billing practices for premium third-party services. The FTC alleges that T-Mobile made millions of dollars by allowing companies to tack high monthly fees onto its customers' bills, while often pocketing 30% to 40% of those fees.
AT&T Agrees to $105M Settlement in Cramming Case
AT&T and the U.S. Federal Trade Commission today announced AT&T has agreed to pay fines totalling $105 million in order to settle allegations that it profited from cramming.
T-Mobile to Explore Settlement with FTC Over Cramming
T-Mobile has signaled to the Federal Trade Commission it is interested in reaching a settlement regarding accusations it unfairly profited from bogus charges foisted onto customers' bills. The FTC sued T-Mobile over its cramming practices, despite T-Mobile's attempts to preempt such legal action by banning premium content and offering refunds to customers.
T-Mobile Makes It Easy to Get Premium SMS Refunds
T-Mobile today said it will reach out to customers who it believes were charged for unwanted premium SMS services so that they might request a refund. T-Mobile ceased offering premium SMS services last year when it ascertained some providers were charging customers even though the customers never requested the service in question.