Back in 2014, the FTC cracked down on AT&T for placing unauthorized third-party charges on its customers’ phone bills, a practice known as “mobile cramming”. On average, the company charged its users $9.99 per month for ringtones and text message subscriptions containing love tips, horoscopes and fun facts, without their consent. AT&T kept 35 percent of the money, while the rest went to Tatto and Acquinity, the two other companies involved.
AT&T already settled the case in 2014 and will now start issuing refunds totalling over $88 million, which represents the most money ever returned to consumers in a mobile cramming case. The refunds will be issued within the next 75 days to more than 2.5 million current and 300,000 former AT&T customers. According to the FTC, the average refund amount is $31.
AT&T received a high volume of complaints related to mobile cramming prior to the FTC and other federal and state agencies stepping in on consumers’ behalf. I am pleased that consumers are now being refunded their money and that AT&T has changed its mobile billing practices. — Edith Ramirez, FTC Chairwoman.
The 2.5 million current AT&T users will receive a credit on their bill within the next 75 days, while the 300,000 former customers will get a check in the mail, which has to be cashed within 60 days.
Are you happy to see that the FTC has stepped in on consumers’ behalf and made sure that they get refunded? Let us know down below.