Mass. receives $327K in AT&T settlement
AT&T has agreed to pay $105 million in a federal-state settlement over unauthorized cell phone charges, known as “mobile cramming,” with Massachusetts receiving $327,000, according to the state attorney general’s office.
The agreement stems from claims that the company “crammed” customer bills with additional charges. These charges were typically $9.99 per month, according to the attorney general’s office, and included services such as horoscopes, trivia and sports scores, that the consumers had never heard of or requested.
“Mobile cramming is a major problem that continues to harm consumers in Massachusetts,” Attorney General Martha Coakley said in a statement. “Addressing this issue of unauthorized charges should be a priority for the entire mobile telephone industry.”
Cases against Verizon, Sprint and T-Mobile for the same practices are ongoing, according to the attorney general’s office.
Under the terms of the settlement, AT&T Mobility is required to open an $80 million fund, administered by the Federal Trade Commission, to repay consumers who were victims of cramming.
AT&T Mobility also agreed to pay $20 million to state attorneys general offices and $5 million to the Federal Communication Commission.
WBJ Web Partners
Most Recent
Most Recent
0 Comments