T-Mobile, FTC in settlement talks over cramming charges

Several months ago, we reported on the Federal Trade Commission (FTC) officially filing a complaint alleging that T-Mobile was involved in the practice of “cramming”, which generally involves third-parties billing customers for Premium SMS services and handing over a portion of that money to the wireless carriers.

Specifically, the FTC alleges that T-Mobile received anywhere from 35 to 40 percent of the total amount charged to consumers. In some cases, T-Mobile continued billing customers even AFTER becoming aware that the charges were fraudulent, dating back to 2012.

Now, T-Mobile seems to be caving a bit to the FTC. According to the Seattle Times, T-Mobile is in talks with the FTC to settle the cramming charges. In papers filed Monday in Seattle federal court, the FTC and T-Mobile both asked the court to put on hold the lawsuit for 90 days while they work out a deal.

“The parties are engaged in substantive settlement talks that they believe would resolve this matter and eliminate the need for further litigation,” lawyers for T-Mobile and the FTC said in the filing. – Seattle Times

The Seattle Times tried contacting T-Mobile but did not get a response.