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. In 2014, AT&T settled with the FTC over illegally adding third-party charges to monthly bills, a practice known as cramming. The FTC says 2.5 million current AT&T customers and 300,000 former customers will receive reimbursement for about $31 sometime in the next 75 days. Existing customers will receive the money as a bill credit, while former customers will be written checks. "AT&T received a high volume of complaints related to mobile cramming prior to the FTC and other federal and state agencies stepping in on consumers' behalf," said FTC Chairwoman Edith Ramirez. "I am pleased that consumers are now being refunded their money and that AT&T has changed its mobile billing practices." Most of the third-party fees involved ringtones, horoscopes, and other messaging-based subscriptions.
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.
Sprint Allowed to Settle Cramming Charges for $50M
Sprint has settled accusations with the Consumer Financial Protection Bureau that it over-billed customers for unwanted services. In May, the FCC fined Sprint $68 million for adding third-party services to customer bills without customer permission — a practice known as cramming.
FTC Gets Second Shot Against AT&T Over Throttling Case
The FTC has earned another chance to prove AT&T illegally throttled customers' data speeds. An appeals court this week reinstated the FTC's case against AT&T, which was originally dismissed last summer.
Amazon Must Repay Customers for In-App Purchases
Amazon will have to reimburse customers whose children ran up large bills making in-app purchases, says a federal judge. The FTC sued Amazon in 2014 following consumer complaints about the ease with which children were able to spend money in apps.
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.
Sweet, it only took the FTC 26 years to respond to Millions of compaints.
Every single carrier allowed this shady practice for Years and made Millions (if not Billions) from it. Both the FTC and the FCC ignored thousands (probably millions) of complaints about it for 20+ years and Now... Now they want to act like some kind of hero.
Im more curious how money did each state as well as the FTC profit from this "Settlement" than how little the few eligible victims get back. Is it More or Less than the entire payout to the actual victims?
Most people who got caught up in these premium text scams paid more than $31, $19.99 x 2 = $40, which is usually the least time it takes people to figure out what is going on, and often much lo...