Friday, November 7, 2014

AT&T FTC Mobile Cramming Settlement for cramming charges

Current and former AT&T customers who were billed for unauthorized third-party services after January 1, 2009 can file a claim for a refund at www.FTC.gov/ATT.

The telecom giant AT&T has agreed to pay a hefty $105 million to settle the lawsuit filed by the Federal Trade Commission over allegations that it charged mobile customers for third-party services without their consent. According to the lawsuit, AT&T engaged in the unfair trade practice of “cramming” and billed millions of customers for services like ringtones, wallpaper, and text messages of horoscope, celebrity gossip or flirting tips, which they never subscribed. Moreover, AT&T even attempted to hide those unauthorized charges (typically $9.99 a month) on customer’s bill by stating them as “AT&T Monthly Subscriptions”.

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In its complaint, the FTC has revealed that AT&T made “tens of millions” of profit by taking 35 percent of these unauthorized charges. However, the company is now forced to put these millions of dollars back into the pockets of customers. The lawsuit settlement requires AT&T to pay $80 million to the FTC for consumer refunds, $20 million as penalties & fees to individual states, and another $5 million to the Federal Communications Commission.

Under the terms of the settlement, AT&T is required to compulsorily notify all of its customers (who were crammed) about the refund program by text message, email, paper bill insert and online bill notification. AT&T has even agreed in the settlement to change its third-party billing practices. From now onwards, the company will ensure customer’s consent before placing any third-party charges on phone bill. Plus, the customers will be provided with the option to block any third-party charges.
So, all those AT&T customers who paid for unauthorized third-party services after January 1, 2009 can visit www.ftc.gov/att and submit their claim form to get refund. And if you’re not sure whether you're eligible for a refund or not, you can contact the FTC’s refund contractor at 1-877-819-9692.

Highlights of AT&T Unauthorized Third-Party Billing Settlement:

Case Name: FTC v. AT&T Mobility LLC
Settlement Website: www.FTC.gov/ATT
Total Settlement Amount: $105 million
Link to get claim form: https://www.ftcsettlementatt.com/en/Claim
Deadline to submit a Claim Form: 1 May 2015

Claims Administrator:
FTC v. AT&T Claims Administrator
P.O. Box 3219
Portland, OR 97208-3219
1-877-819-9692

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