Over 2.7m AT&T users get $88m refunds from FTC
The Federal Trade Commission is refunding $88 million to 2.7 million AT&T customers who fell victim to mobile cramming
The 'tactic' used is better -known as “mobile cramming” where subscribers have small sum of money added to their bills which they have not agreed to. The
refunds to consumers relate to 2014 settlements with AT&T, and the
companies behind two of the cramming schemes, Tatto and Acquinity.
represent the most money ever returned to consumers in a mobile cramming case.
Through the FTC’s refund program, nearly 2.5 million current AT&T customers
will receive a credit on their bill within the next 75 days, and more than
300,000 former customers will get cheques. The average refund amount is $31.
received a high volume of complaints related to mobile cramming before the FTC
and other federal and state agencies stepping in on consumers’ behalf,” said
FTC Chairwoman Edith Ramirez. “I am pleased that consumers are now being refunded their money and that AT&T
has changed its mobile billing practices.”
As part of
which also involved all 50 states and the District of Columbia, as well as the
Federal Communications Commission, AT&T agreed to pay $80 million for
refunds and notify current customers who were
billed for unauthorized third-party charges of the return program. Under
the settlement, the company also significantly changed its process for
the refund administrator for the refund
program, will begin mailing refunds and
applying credits to AT&T phone bills immediately. Refunds are being issued in the wake of consumers filing
their claims for redress with the FTC.