U.S. settles lawsuit with T-Mobile U.S. over cramming

Reuters News
Posted: Dec 19, 2014 12:17 PM

WASHINGTON (Reuters) - T-Mobile US has agreed to settle a lawsuit filed by the U.S. government over unauthorized charges placed on customers' bills, a practice known as cramming, and to pay at least $90 million in refunds and fines, two U.S. government agencies said on Friday.

The FTC had filed a complaint against T-Mobile in July, saying that the company had put subscriptions for services like horoscopes or celebrity gossip delivered by text message, which often cost $9.99 a month, on consumers' mobile phone bills often without their knowledge.

T-Mobile USA received 35 to 40 percent of the amount charged, the Federal Trade Commission (FTC) said in July.

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The Federal Communications Commission and state attorneys general were also involved in the probe.

(Reporting by Diane Bartz, Editing by Franklin Paul)