T-Mobile: FTC Charges 'Unfounded and Without Merit'

T-Mobile refuted charges by the Federal Trade Commission (FTC) that it had bilked customers for hundreds of millions of dollars in erroneous SMS charges. CEO John Legere called the complaints “unfounded and without merit.”

The FTC claims that T-Mobile took in 35 to 45 percent of the revenue from SMS services like “flirting tips, horoscope information or celebrity gossip” that typically charge $10 monthly. The Commission also alleges that T-Mobile continued collecting money off these charges even after it had reason to believe the charges were fraudulent.

Legere noted that T-Mobile has been fighting to add more transparency to the industry. “We exited this business in late 2013, and announced an aggressive program to take care of customers and we are disappointed that the FTC has instead chosen to file this sensationalized legal action,” Legere wrote. “We are the first to take action for the consumer and I am calling for the entire industry to do the same.”