Senate Says Wireless Users Bilked By Bogus Charges
Jul 30, 2014, 11:51 AM by Eric M. Zeman
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.
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