(The Hosting News) – AT&T is set to pay $105 million to settle claims that it had used the practice of “cramming” to charge customers for services such as dating tips, ringtones, and horoscopes.
According to Bloomberg, the mobile giant will pay $80 million in refunds to customers, $20 million in fees to all U.S. states, and anther $5 million to the FCC in fines.
“This settlement will put tens of millions of dollars back in the pockets of consumers harmed by AT&T’s cramming of its mobile customers,” stated Edith Ramirez, FTC Chairwoman. “AT&T had strong reason to suspect that the charges were unauthorized, yet continued to place these charges on its customers’ bills.”
Ramirez added that AT&T took at least 35 percent of every charge, which most of the charges, disguised as “AT&T monthly subscriptions,” were roughly $9.99.
“We reached a broad settlement to resolve claims that some of our wireless customers were billed for charges from third-parties that the customers did not authorize. This settlement gives our customers who believe they were wrongfully billed for PSMS the ability to get a refund,” said an AT&T spokesman.
T-Mobile is currently under investigation by the FCC for the use of cramming practices as well.