T-Mobile agrees to $90 million fine for cramming
Posted by: Timothy Weaver on 12/20/2014 09:51 AM
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T-Mobile has agreed to pay out $90 million for its years long practice of cramming.
The FTC alleged that the company made "hundreds of millions of dollars" by charging customers for premium SMS subscriptions. Customers were typically charged $9.99 a month for such services as flirting tips, horoscope information, or celebrity gossip.
T-Mobile ignored some customers when they complained and raked in from 35 to 40 percent of the total amount charged to consumers.
In addition to the refunds, T-Mobile will be required to pay $18 million in fines and penalties to the attorneys general of all 50 states and the District of Columbia and $4.5 million to the Federal Communications Commission.
Travis LeBlanc, chief of the FCC Enforcement Bureau, said: "T-Mobile was in bed with the crammers. Crammers are predators; they're a threat to consumers everywhere. The FTC has received many thousands of complaints about cramming."
T-Mobile ignored some customers when they complained and raked in from 35 to 40 percent of the total amount charged to consumers.
In addition to the refunds, T-Mobile will be required to pay $18 million in fines and penalties to the attorneys general of all 50 states and the District of Columbia and $4.5 million to the Federal Communications Commission.
Travis LeBlanc, chief of the FCC Enforcement Bureau, said: "T-Mobile was in bed with the crammers. Crammers are predators; they're a threat to consumers everywhere. The FTC has received many thousands of complaints about cramming."
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