Monday, December 22, 2014

T-Mobile Settles Phone-Cramming Case for $90 Million

How to get rich : charge customers for services they did not ask for and did not want.
Republicans will be outraged by the government interfering with a private business making money by cheating it's customers.,2817,2473975,00.asp

By Angela Moscaritolo
December 19, 2014

T-Mobile will pay at least $90 million for failing to stop bogus charges placed on customers' bills — a practice known as cramming, the Federal Trade Commission and Federal Communications Commission announced today.

In a complaint filed back in July, the FTC said that T-Mobile made "hundreds of millions of dollars" by charging customers for premium SMS subscriptions. These services — which ran up to $9.99 per month for things like flirting tips, horoscope information, or celebrity gossip — were added to T-Mobile users' bills by scammers without the customer's authorization.

When customers complained, however, T-Mobile continued to bill some users for years, the FTC said. The carrier made anywhere from 35 to 40 percent of the total amount charged to consumers.


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