AT&T Slapped With $105 Million Fine For ‘Cramming’ Charges

When mobile carriers slip in extra charges onto customers’ phone bills the practice is referred to as “cramming.” The result is a lot of spam and unwanted text messages that are sent to customers as a result of third parties passing on charges to the phone companies. The FTC today slapped AT&T with a $105 million fine and referred to this settlement as the “largest cramming settlement in history.”

The FTC has found that while ignoring complaints from customers affected by cramming AT&T made millions of dollars as it pocketed 35 percent of these fees. AT&T has now been hit with a fine of which a sizeable portion will be used to reimburse affected customers.

Out of the $105 million settlement amount $80 million will remain with the FTC which will be used for reimbursements. $20 million will be sent down to the individual states and the FCC will get to pocket $5 million.

That’s not all. The settlement also dictates that AT&T end the program and inform customers proactively if their accounts are billed with extra fees. This isn’t the first time that a mobile carrier has been hit with such a settlement, T-Mobile went through something quite similar in the not so distant past.

For those wondering how will they receive a reimbursement, AT&T is supposed to contact all those that have been affected by cramming, after which they can apply for a refund through FCC’s website.

Adnan Farooqui
Categories: Cellphones
Tags: AT&T