T-Mobile has settled with the FTC for $90 million to cover cramming charges.
FCC Chairman Tom Wheeler called the settlement a win for consumers and promised to do more to ensure the practice is stopped.
“It means compensation for T-Mobile customers who were fraudulently billed for third-party services that they did not want or authorize,” Wheeler said in a statement. “And it goes one step further. Today’s action will also help protect all of T-Mobile’s customers from bogus third-party charges in the future.”
It was revealed back in late October that T-Mobile had already set aside almost $50 million to repay customers that had incurred cramming charges.
At the time the charges were filed, the FTC alleged that T-Mobile had made “hundreds of millions” from bogus SMS charges, claiming that the carrier took in 35 to 45 percent of the the revenue brought in from services like “flirting tops, horoscope information and celebrity gossip.”
The settlement comes concurrent with an annoucement that the Commission is now working with the FTC to enact rules that will protect consumers from cramming in the future. A press conference on the matter is scheduled for 1:00 p.m. EST.
T-Mobile is just the latest of the major carriers to reach a settlement with the FTC on charges of cramming. Back in October, AT&T settled with the FTC in a similar suit for $105 million, and just this week it was reported that Sprint was working to reach a deal for almost the same amount.
Filed Under: Industry regulations