AT&T Agrees to $105M Settlement in Cramming Case
Oct 8, 2014, 12:15 PM by Eric M. Zeman
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. The FTC alleged AT&T made millions of dollars by allowing third-party companies to fraudulently bill customers for premium SMS and other services. AT&T typically kept 35% of the billed amount each month. AT&T customers who believe they were inappropriately charged for services they did not authorize can seek a refund. A portion of the settlement has been set aside for customer reparations. "While we had rigorous protections in place to guard consumers against unauthorized billing from [premium SMS] companies, last year we discontinued third-party billing for PSMS services. Today, we reached a broad settlement to resolve claims that some of our wireless customers were billed for charges from third-parties that the customers did not authorize," said AT&T. The FTC has made similar allegations against T-Mobile, which vehemently denies the government's claims.
source: AT&T
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Comments
Well you know
Zpike said:...
AT&T's customers are all pond scum and sewer slime anyway. They probably deserved it for being such crappy customers and almost bankrupting AT&T with their unprofitable contracts. AT&T needed that money just to stay afl
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I Wondered Just How Long This Would Take To Catch Up.
All the while on the "take" getting highly profitable kick backs from the third party premium content providers for doing nothing more than allowing it to happen to their subscribers.
As well as blaming the end user subscriber for its existence.
"- well, only you or someone authorized by you to use this line could of subscribed to this and consented to the 3rd parties terms"
"- it's a three step opt in process, I seriously doubt it was unintentional or an accident as you are claiming Mr/Mrs Customer as you are claiming"
"- Mr/Mrs Customer, you gave your ANI/MDN to the web site requ...
(continues)
MadFatMan said:...
For years carriers have side stepped this profitable flaming pile of doggy doo that was left on the front porch and invoices of their subscribers.
All the while on the "take" getting highly profitable kick backs
(continues)
Well at least they're being fair...
But then they should have to use the proceeds from their strong arm for something useful for the people, who paid the moneys that the carriers are giving them... I can think of several.
