FTC Accuses T-Mobile of Pocketing Millions From Fraudulent Premium SMS Services

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The Federal Trade Commission (FTC) yesterday, filed a complaint against T-Mobile, accusing the wireless carrier of practicing “cramming,” or obscuring third-party premium SMS fees in hard-to-understand monthly bills.

The motion alleges that T-Mobile took a 30% to 40% cut of many fees and pocketed millions of dollars beginning in 2012, often failing or refusing to refund affected subscribers until last year in 2013. 

Unsurprisingly, T-Mobile CEO John Legere responded with a few choice words. Calling the FTC complaint “unfounded” and “misdirected.” He asserted that T-Mobile ceased billing premium SMS services last year and has been providing full refunds to customers. Legere placed much of the blame on bad actors, maintaining a few premium SMS providers acted irresponsibly.

Whoever is truly at fault, the proceedings are definitely a win for consumers hit by exorbitant and unexpected SMS fees.

Here’s hoping the matter is swiftly resolved.

Via: T-Mobile | Phone Scoop




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