AT&T fined a whopping $105 million for "cramming" charges

The Federal Trade Commission and Federal Communications Commission announced today that AT&T has agreed to pay $105 million for adding unauthorized cell phone charges to its customers bills.

Affected customers can go to http://www.ftc.gov/att to seek a refund. AT&T will pay the FTC $80 million that is earmarked for customer refunds.

AT&T Mobility will also pay $20 million to state governments participating in the settlement, and will make a $5 million penalty payment to the U.S. Treasury.

What is at issue are the bogus charges which where hidden on phone bills for monthly subscriptions to things like ringtones, wallpaper, and text messages with horoscopes, flirting tips, celebrity gossip, and more. Most of these charges were $9.99 per month, though in some cases they were as high as $60 per month. AT&T got a 35 percent cut of all sales.

FCC Chairman Tom Wheeler said: "For too long, consumers have been charged on their phone bills for things they did not buy. It's estimated that 20 million consumers per year are caught in this type of [cramming] trap, [but] it stops today for AT&T."

AT&T agreed to revise its billing practices so consumers can easily see what they are paying for, and offer the option on block all third-party services.