For $90 million, T-Mobile will settle FTC charges that it slipped bogus fees onto wireless bills

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T-Mobile is agreeing to pay at least $90 million -- and possibly as much as $112.5 million -- as part of a settlement with federal and state officials over third-party fees that it added to consumers' bills without their knowledge or consent. The hidden fees showed up on billing statements as a "premium" text messaging service when in fact, the complaint alleged, the messages contained spammy horoscope information or celebrity gossip that customers never signed up for.

The tactic, known as mobile cramming, benefited T-Mobile when the company took a 40 percent cut of every third-party charge. The settlement involves the Federal Trade Commission, the Federal Communications Commission, and the attorneys general of all 50 states and the District of Columbia. Under the agreement, T-Mobile will pay back more than the $90 million if the demand for refunds exceeds that amount.


For $90 million, T-Mobile will settle FTC charges that it slipped bogus fees onto wireless bills Consent Decree (FCC) Spotting the signs of a crampage: Lessons from the FTC’s proposed settlement with T-Mobile (FTC) T-Mobile Settles Government “Cramming” Charges for $90 Million (recode) T-Mobile to Pay $90 Million to Settle Cramming, Billing Investigation FAQ