T-Mobile paying up to $90M in refunds for unwanted services

Dec 19, 2014 11:04 AM by News Staff

WASHINGTON (AP) - T-Mobile US will issue up to $90 million in refunds for billing customers for cellphone text services they didn't order, under a settlement with federal regulators.

The Federal Trade Commission announced the agreement Friday with T-Mobile over billing for unauthorized charges, a practice known as "cramming." T-Mobile, the fourth-largest U.S. cellphone company, also is paying $18 million in fines to the 50 states and the District of Columbia, and $4.5 million in fines to the Federal Communications Commission.

The FTC sued T-Mobile in July, accusing it of billing customers for subscriptions to text services like $9.99-per-month horoscopes or celebrity gossip updates that they didn't want or authorize.

T-Mobile collected 35 percent to 40 percent of the charges, even after being alerted by customers that they were bogus, the FTC alleges.

Copyright 2014 The Associated Press. All rights reserved.


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