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.
T-Mobile Settles FCC Cramming Charges for $90 Million
T-Mobile today agreed to pay the FTC and FCC a total of $90 million to settle accusations that the company was complicit in allowing third-parties to charge customers for unwanted services. An FTC and FCC investigation found T-Mobile guilty of breaking the law by "engaging in an unjust and unreasonable practice of billing consumers for products or services they had not authorized; and failing to provide a brief, clear, non-misleading, plain language description of the third-party charges on the telephone bills sent to consumers." A minimum of $67.5 million of the fine will be set aside to repay customers who claim they were overcharged.
FTC to Reimburse AT&T Customers $88M In Cramming Fees
The U.S. Federal Trade Commission today laid out plans to return some $88 million in cash to wronged AT&T customers.
Amazon Held Responsible for Kids' In-App Purchases
A federal judge says Amazon deserves to be on the hook for charges rung up by children on mobile devices. Consumers complained it was too easy for children to spend money on in-app purchases without proper authorization.
Sprint and Verizon Fined Total of $158M to Settle Cramming Charges
The FCC today said Sprint and Verizon Wireless have agreed to pay $158 million to settle charges that they fraudulently charged customers for third-party services — a tactic referred to as cramming. Specifically, Sprint will pay a total of $68 million, $50 million of which will go back to customers, $14 million of which will go to state governments, and $2 million of which will go to the federal government.
Sprint Agrees to Settle FTC Charges for $2.95M
Sprint will pay the Federal Trade Commission a fine of $2.95 million for failing to properly disclose extra monthly fees billed to customers with lower credit scores. Between November 2013 and June 2014, Sprint enrolled customers with inferior credit scores in the Account Spending Limit (ASL) program — and added a $7.99 monthly fee on top of their standard service charges.