FCC Slams AT&T With $105M Settlement For Bogus Customer Charges


The FCC slapped AT&T with the largest « enforcement action » in its history, the agency announced today. The total bill, $105 million, will include $80 million in payments to scammed AT&T customers, $20 million to « state governments participating in the settlement, » with the last $5 million going to the FCC itself, it said today in a statement.

The charges relate to cramming, a practice that sees unwanted recurring charges for ringtones, wallpapers and the like end up on consumers’ cell phone bills, often unbeknownst to them. They end up there, placed by nasty people out to harm folks. People are often tricked into signing up for something that they did not understand would entail a regular payment. A normal cost for one of these « crammed » services is $9.99 per month.

According to the FCC, AT&T would sometimes only refund part of the crammed charges after consumer complaint. AT&T presumably kept its cut of the withheld…

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