DC Consumers Eligible for Refunds in "Cramming" Settlement with AT&T Mobility

WASHINGTON, D.C. – D.C. consumers will be eligible for refunds from an $80 million fund to be established under a national settlement reached with AT&T Mobility, LLC, by the District of Columbia, all 50 states, and two federal agencies, D.C. Attorney General Irvin B. Nathan announced today.  The settlement resolves allegations that AT&T placed unauthorized charges for third-party services on consumers’ mobile telephone bills, a practice known as “cramming.”

The settlement was jointly announced at the Wilson Building in the District of Columbia today in a press conference with Attorney General Nathan, Tom Wheeler, Chairman of the Federal Communications Commission, Edith Ramirez, Chairwoman of the Federal Trade Commission, and other state Attorneys General.

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 AT&T to stay out of the commercial premium text messaging subscription business and to take the following steps:

  • AT&T must obtain consumers’ express consent before billing them for third-party charges;
  • AT&T must provide a full refund or credit to consumers who are billed for unauthorized third-party charges at any time after the settlement;
  • AT&T must 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
  • AT&T must separate out third-party charges on consumers’ mobile phone bills.

Beginning today, consumers who were the victims of cramming can visit www.ftc.gov/att, or call 1-877-819-9692, to find out whether they are eligible for a refund and how to submit a claim.

In addition to the refunds for D.C. consumers, the District Government will receive a $212,269 settlement payment.  

“District of Columbia consumers should be able to sign up for and receive cell phone services without having to be on guard for unexpected and unwanted charges on their cell phone bills, and I am pleased that through our federal-state partnership we have reached the settlement here that provides consumers relief,” Attorney General Nathan said.