Showing posts with label PHONE BILLS. Show all posts
Showing posts with label PHONE BILLS. Show all posts

Monday, December 22, 2014

T-MOBILE SETTLES CRAMMING CASE WITH FTC AND WILL PAY MINIMUM $90 MILLION

FROM:  U.S. FEDERAL TRADE COMMISSION 
T-Mobile to Pay At Least $90 Million, Including Full Consumer Refunds To Settle FTC Mobile Cramming Case
Settlement Requires Company To Pay Fines to States and FCC

T-Mobile has agreed to fully refund its customers for unwanted third-party charges it placed on their phone bills, a practice known as mobile cramming, paying at least $90 million to settle a Federal Trade Commission lawsuit filed earlier this year.

In addition to the full refunds T-Mobile is providing, which will resolve the FTC’s lawsuit if approved by the court, T-Mobile is paying $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.

“Mobile cramming is an issue that has affected millions of American consumers, and I’m pleased that this settlement will put money back in the hands of affected T-Mobile customers,” said FTC Chairwoman Edith Ramirez. “Consumers should be able to trust that their mobile phone bills reflect the charges they authorized and nothing more.”

Under the terms of the settlement, T-Mobile will be required to offer full refunds to all affected consumers. The amount of money the company pays must reach at least $90 million in redress or other payments. Should the company fail to do so, the balance must be remitted to the FTC for additional consumer redress, consumer education, or other uses. The settlement requires T-Mobile to contact all of its crammed customers – current and former – to inform them of the refund program and claims process, and to do so in a clear and conspicuous way.

The FTC filed suit against T-Mobile in July, alleging that the company placed millions of dollars in unwanted third-party charges on its customers’ mobile phone bills, receiving 35 to 40 percent of every charge they placed. The charges were for services like horoscopes, love tips and celebrity gossip, for which T-Mobile typically billed consumers $9.99 per month.

The FTC’s complaint alleges that in some cases, T-Mobile was charging consumers for services that had refund rates of up to 40 percent in a single month. The FTC has alleged that because such a large number of people were seeking refunds, it was an obvious sign to T-Mobile that the charges were never authorized by its customers.

According to the FTC’s July complaint, T-Mobile’s phone bills made it nearly impossible for consumers to find and understand third-party subscription charges. The FTC’s complaint against T-Mobile noted that in many instances information about the third-party charges crammed on to customers’ bills was buried deep in phone bills that totaled more than 50 pages in length.

In addition to requiring T-Mobile to provide consumers with full refunds, the settlement requires the company to get consumers’ express informed consent before placing third-party charges on their bills. The company also must ensure that consumers are notified of any third-party charges on their bills and provide them with information about the option to block third-party charges.

The FTC has brought numerous cases related to mobile cramming in recent months, taking action against mobile carriers and the third parties who place unauthorized charges.

The Commission vote approving the proposed stipulated order was 5-0. It is subject to court approval. The FTC filed the proposed stipulated order in the U.S. District Court for the Western District of Washington.

NOTE: Stipulated orders have the force of law when approved and signed by the District Court judge.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them.The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

Sunday, October 6, 2013

FTC RETURNS MONEY TO VICTIMS OF PHONE BILL CRAMMING SCAM

FROM:  FEDERAL TRADE COMMISSION 

FTC Returns More Than $5.4 Million to Victims of Massive Cramming Scam
The Federal Trade Commission is mailing 139,357 checks totaling more than $5.4 million to consumers and businesses who were victimized by a massive fraudulent operation that placed unwanted charges on their telephone bills.

In 2010, the FTC stopped the scam, which was led by an internet services company known as Inc21. The company enlisted a number of third-party billing aggregators to place charges on  phone bills. In most cases, the victims were either never contacted by the company, were deceived about why they had been contacted, or in fact declined the services for which they were eventually billed.  The FTC’s Criminal Liaison Unit cooperated with criminal law enforcement partners at the Department of Justice, the Internal Revenue Service, and United States Postal Inspection Service, leading to the prosecution and conviction of Inc21’s owners.

Consumers who receive the checks from the FTC’s refund administrator should deposit or cash them within 60 days of the mailing date.  The FTC never requires consumers to pay money or to provide information before refund checks can be cashed.  The average amount of the refunds will be approximately $39, however amounts will vary based on how much money was lost.

The checks will be mailed by Epiq Systems, Inc., who is the redress administrator for this matter. Consumers with questions about the redress, can contact Epiq Systems directly at 1-866-328-1992. More information about the FTC’s refunds program is available on the FTC’s website.        

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them.  To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357).  The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad.  The FTC’s website provides free information on a variety of consumer topics.  Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

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