AG Gansler Announces $90 Million "Cramming" Settlement with T-Mobile

AG Gansler Announces $90 Million "Cramming" Settlement with T-Mobile

Refunds available for consumers improperly billed for third-party services

 

Baltimore, MD- Attorney General Douglas F. Gansler today announced that his Consumer Protection Division, along with the Attorneys General of the other 49 states and the District of Columbia, the Federal Trade Commission and the Federal Communications Commission, reached settlements with T-Mobile USA, Inc., resolving allegations that T-Mobile placed unauthorized charges for third-party services on consumers' mobile phone bills, also known as "cramming."

"Cell phone bills are already high enough without these unauthorized and often unwanted services," said Attorney General Gansler. "T-Mobile has agreed to provide refunds for overcharged consumers and adopt strict guidelines to ensure consumers are only billed for products or services for which they knowingly agreed to pay an additional fee."

Under the terms of the settlements, T-Mobile must provide each victim of cramming who files a claim under its Premium SMS Refund Program an opportunity for a full refund. In total, T-Mobile must pay at least $90 million, with at least $67.5 million paid to consumers (a portion of which may be paid by forgiving debts consumers may owe T-Mobile). T-Mobile will also pay $18 million to the Attorneys General and $4.5 million to the Federal Communications Commission.
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