WASHINGTON - The Federal Trade Commission, Federal Communications Commission and all fifty state attorneys general today announced a settlement involving T-Mobile for mobile cramming.
In the settlement reached, the company will be required to pay full refunds to its customers for cramming, the illegal practice of putting unauthorized third-party charges on consumers' phones. T-Mobile is expected to pay at least $90 million to settle a FTC lawsuit filed earlier this year.
Delara Derakhshani, policy counsel for Consumers Union, the advocacy arm of Consumer Reports, said, “Today’s action sends a strong message that consumers deserve to be compensated for charges which they did not authorize. We’re pleased that as part of the settlement, full refunds will be awarded to the millions of consumers who were affected by this scam. All too often, consumers are unaware that they have been a victim of cramming practices, and the terms of today's settlement go a long way to ensuring that consumers are provided with clear and conspicuous information about the wrongdoing that has occurred and the redress that is to follow."
Consumers Union has pushed for tougher consumer protections to prevent cramming, first when unauthorized, third-party charges appeared on wireline phone bills in the 1990s, followed by cramming on wireless bills.
According to the FTC complaint against T-Mobile filed in July, the carrier has taken 35 to 40 percent of unwanted recurring, third-party charges for text-messaging services on consumers' mobile phone bills since 2009. When consumers complained they would often be denied refunds or would receive only partial refunds after making multiple complaints.
Media Contact:
David Butler, Consumers Union, 202.579.7935 (mobile) or dbutler@consumer.org
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Consumer Reports is a nonprofit
membership organization that works side by side with consumers to
create a fairer, safer, and healthier world. For 80 years, CR has provided evidence-based product
testing and ratings, rigorous research, hard-hitting investigative journalism, public education,
and steadfast policy action on behalf of consumers’ interests. Unconstrained by advertising or
other commercial influences, CR has exposed landmark public health and safety issues and strives
to be a catalyst for pro-consumer changes in the marketplace. From championing responsible auto
safety standards, to winning food and water protections, to enhancing healthcare quality, to
fighting back against predatory lenders in the financial markets, Consumer Reports has always
been on the front lines, raising the voices of consumers.
© 2014 Consumer Reports. The material above is intended for legitimate news entities only; it may
not be used for advertising or promotional purposes. Consumer Reports® is an expert, independent,
nonprofit organization whose mission is to work side by side with consumers to create a fairer,
safer, and healthier world. We accept no advertising and pay for all the products we test. We are
not beholden to any commercial interest. Our income is derived from the sale of Consumer Reports®
magazine, ConsumerReports.org® and our other publications and information products, services, fees,
and noncommercial contributions and grants. Our Ratings and reports are intended solely for the use
of our readers. Neither the Ratings nor the reports may be used in advertising or for any other
commercial purpose without our prior written permission. Consumer Reports will take all steps open
to it to prevent unauthorized commercial use of its content and trademarks.
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