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.
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 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.