Senate Says Wireless Users Bilked By Bogus Charges
Cellphone users in the U.S. have been fraudulently charged hundreds of millions of dollars, says a report released today by the U.S. Senate Commerce Committee. The Senate is scheduled to hold a hearing on cramming and believes small companies that sell ringtones and other premium text messaging services often fraudulently bill customers who never signed up. The money was collected by the wireless network operators, which keep a cut of the revenue. "Some carrier policies allowed vendors to continue billing consumers even when the vendors had several months of consecutively high consumer refund rates," read part of the report. The FTC recently sued T-Mobile for allowing its customers to be crammed, though T-Mobile vehemently denies the accusation. Earlier this month, a California court shut down six companies that raked in more than $100 million via cramming. The Senate has yet to decide what to do about the matter.
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 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.
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.
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.
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.
What fools they must think we are, look over there, its high premium text messaging rates, that is Very Very important in the big scheme of what the Senate is Supposed to do, because there is nothing more important to attend to, all american's don't deserve water. I wonder how much they spent on this 82 page study alone, leading with the lin...