Not long ago, the FTC sued T-Mobile for the practice of cramming, or adding fraudulent charges to a customer’s bill without their authorization. These charges were often premium text message services that offer wallpapers and ringtones for a monthly charge, though this charge is often alluded to be a one-time thing.
The lawsuit was started due to T-Mobile’s shady way of handling cramming. Not all customers were given refunds, and some were told to seek refunds from the company running the services. The charges on the bill itself were also hidden with strange names, making finding fraudulent charges difficult. These practices were deemed unfair to consumers.
This lawsuit was finally settled today with T-Mobile paying $90 million, part of which will go towards refunding customers who were wrongfully charged. It’s good to see consumer protection being furthered, if only for better and clearer billing practices.