Unauthorized Phone Charges Cost Americans $2 Billion A Year

Washington (CNN) -- A key Senate chairman says Congress needs to pass legislation to protect customers from unauthorized third-party charges on their phone bills because the telephone industry has failed to prevent the practice.

Sen. Jay Rockefeller, D-West Virginia, said a one-year study by the Commerce, Science and Transportation Committee shows about $2 billion a year in "mystery fees" show up on the landline phone bills of Americans, a problem known as cramming.

In a Wednesday hearing, Rockefeller asked an industry representative why major companies like AT&T haven't stopped unauthorized third-party charges from going onto their customers' phone bills.

"It's illegal, it's wrong, it's scamming," Rockefeller said. "Why haven't you cleaned up your act?"

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