T-Mobile Sued Over Unauthorized Third Party Billing

OpenAI

August 5, 2014 - It wasn't long ago that we wrote a piece about cramming on T-Mobile's network , and now the FTC has officially filed suit against the carrier over the practice.

In the suit, the FTC alleges that T-Mobile made hundreds of millions in profits off the scam, while making it difficult or impossible for affected customers to cancel the services or receive a refund. According to the complaint, many customers were completely unaware of the charges, often totaling up to $9.99 per month for horoscopes or flirting tips, because of the size and ambiguity of mobile phone bills. The FTC is seeking refunds for all affected customers.

T-Mobile has responded to the complaint by pointing out that they voluntarily stopped third party billing sometime last year, and have since begun working to provide a way for customers to request refunds if they were hit with charges for unwanted services. John Legere, outspoken CEO of T-Mobile, went on to say that the practice was rampant all over the industry, and that T-Mobile is "dissapointed" that the FTC has focused on them instead of the "real bad actors".

Indeed, in a seperate case in November of last year in Vermont, all four major cell phone carriers publicly agreed to stop most third party billing agreements - aside from those centered around charitible and political donations.

As of now, only time will tell if T-Mobile's actions in this matter will quell the FTC's complaints and whether consumers will continue to rally behind them and their "Un-Carrier" agenda.