Skip to main content

T-Mobile agrees to pay out $90 million over mobile cramming

T-Mobile can't win 'em all it seems

T-Mobile has settled with the US Federal Communications Commission (FCC) over a case that alleged it had "crammed" unauthorized charges onto subscribers' bills.

T-Mobile has agreed to pay $90 million out to customers who were charged as much as $10 per month for unsolicited horoscopes, jokes and other nonsense.

The settlement dictates that T-Mobile spends at least $67.5 million on a program for consumer refunds, $18 million to state governments and $4.5 million to the US treasury.

Current and former T-Mobile subscribers who think they may have been affected can head to to request a refund once the site is up and running.

Who's next?

"Yet again we are faced with a phone company that profited while its customers were fleeced by third parties who placed unauthorized charges on their phone bills," FCC Enforcement Bureau Chief Travis LeBlanc said in a rather self-congratulatory statement. "And once again the FCC is standing up for those customers."

"Today's settlement holds T-Mobile responsible for its billing practices and puts money directly back into the pockets of American consumers," he continued.

The case against T-Mobile began over the summer, and it's nice to see it come to a swift end, but it's just one of numerous identical suits against carriers in the US.

AT&T reached a similar settlement with the FTC (though for an even larger $105 million) in October, while the US Consumer Financial Protection Bureau took Sprint to task for cramming this week.

Via GigaOM