DC consumers will be eligible for refunds under a settlement reached with T-Mobile USA, Inc. by the District of Columbia, all 50 states, the Federal Communications Commission, and the Federal Trade Commission, Interim DC Attorney General Eugene A. Adams announced today. In addition, the District government will receive a $191,042 settlement payment.
The $90 million national settlement resolves allegations that T-Mobile placed unauthorized charges for third-party services on consumers’ mobile telephone bills, a practice known as “cramming.”
The settlement with T-Mobile follows a similar settlement with AT&T Mobility, LLC, announced by the states and federal agencies on October 8.
Consumers who have been the victims of cramming often complain about charges, typically $9.99 per month, for “premium” text message subscription services such as horoscopes, trivia and sports scores that the consumers did not want or request.
The settlement requires T-Mobile to stay out of the commercial premium text messaging subscription business and to take these steps:
- Obtain consumers’ express consent before billing them for third-party charges;
- Provide a full refund or credit to consumers who are billed for unauthorized third-party charges;
- Inform consumers at sign-up that their mobile phones can be used to pay for third-party charges, and how to block such charges; and
- Separate out third-party charges on consumers’ mobile phone bills.
Beginning today, T-Mobile consumers who were the victims of cramming can visit www.t-mobilerefund.com, or call 1-855-382-6403, to find out whether they are eligible for a refund and how to submit a claim.