FCC to fine Sprint $105 million for phone bill cramming

FCC to fine Sprint $105 million for phone bill cramming
Sprint is facing a fine from the FCC that could run as high as $105 million. The agency is accusing the carrier of cramming, a practice where unauthorized charges are added to a customer's monthly bill. FCC commissioners are expected to soon vote on the fine. Back in October, the FCC demanded a similar amount from AT&T, claiming that the carrier had crammed customers' invoices with unauthorized charges.

In July, the FTC filed cramming charges against T-Mobile in the U.S. District Court for the Western District of Washington. According to FCC commissioner Tom Wheeler, 20 million Americans a year are victims of cramming. In November, all four major U.S.mobile operators agreed not to charge customers for third party services.

AT&T's settlement with the FCC back in October called for the mobile operator to return $80 million to customers affected by the cramming, in the form of refunds. $20 million will be paid to the states and the District of Columbia, while a $5 million fine should end up being paid to the feds.

source: Reuters

FEATURED VIDEO

7 Comments

1. tigermcm

Posts: 861; Member since: Sep 02, 2009

the money having to be paid to the feds....what is that a finders fee?

2. cripton805

Posts: 1485; Member since: Mar 18, 2012

Honestly, just include all taxes and fees into whatever price you advertise. It's just stupid.

7. downphoenix

Posts: 3165; Member since: Jun 19, 2010

This has nothing to do with it, this has to do with the 3rd party charges, most particularly the premium messages. The major carriers no longer allow charges through these means. Also despite what this suit says, the large majority of these were customer initiated, so I don't agree with Sprint or anyone else being fined for this.

3. skymitch89

Posts: 1451; Member since: Nov 05, 2010

It's sad that each month my bill goes up another 2-5 cents on Sprint.

4. QWIKSTRIKE

Posts: 1457; Member since: Mar 09, 2010

What plan do you have mine is always the same.

5. mturby unregistered

bwa ha ha ha ha!

6. corporateJP

Posts: 2458; Member since: Nov 28, 2009

Same sh*t, different carrier... Everything should be like New Cricket...AT&T's prepaid arm is running a better business model than they (and the other three carriers, for that matter) are.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.