FTC Sending Out Refunds in Cramming Case

The Federal Trade Commission is sending out 22,671 refund checks to people who lost money to a mobile cramming operation that placed tens of millions of dollars in charges on their mobile phone bills without their permission. The refunds stem from a major FTC crackdown first announced in 2013. As part of the scheme, the defendants sent text messages containing celebrity gossip alerts, horoscopes, or “fun facts” to consumers and placed monthly subscription fees for these “services” on their mobile phone bills without their authorization. The practice of placing unauthorized charges on a consumer’s mobile phone bill is known as mobile cramming. This is the third round of refunds issued as part of the FTC’s crackdown on mobile cramming. The latest round of refunds, totaling $2,107,156.24, comes from assets recovered as part of a settlement with Tatto, Inc. The average check amount is $92.95.