Items tagged with premium texts

In December 2014, T-Mobile faced the music and agreed to settle with the Federal Trade Commission (FTC) and the Federal Communications Commission (FCC) to the tune of $90 million for phone “cramming.” A few months prior, in October, AT&T coughed up $105 million for the same offense. So what is cramming? Cramming consists of unauthorized charges that appear on your monthly phone bill, the bulk of which come from third-party Premium Short Message Services (PSMS). Wireless carriers have been reluctant to crackdown on cramming in the past because they receive a kickback (somewhere in the neighborhood of 30 to 40 percent) from each unauthorized charge that appears on a customer’s bill which translates... Read more...
AT&T agreed to settle with the Federal Trade Commission (FTC) to the tune of $105 million in early October for its part in a “cramming” scheme that bilked customers out of millions of dollars. Cramming refers to any unauthorized charges on a customer’s cell phone bill, and typically come in the form of unsolicited text messages. Today is T-Mobile’s turn, as it has agreed to a settlement with the FTC and will pay at least $90 million. That sum will be compromised mostly of consumer refunds, but $18 million will go towards fines and penalties owed to all 50 states and $4.5 million will go directly into the Federal Communications Commission’s (FCC’s) pockets.The FTC just poured a bucket of cold... Read more...