The refunds represent the most money ever returned to consumers in a mobile cramming case. Through the FTC’s refund program, nearly 2.5 million current AT&T customers will receive a credit on their bill within the next 75 days, and more than 300,000 former customers will receive a check. The average refund amount is $31.
“AT&T received a high volume of complaints related to mobile cramming prior to the FTC and other federal and state agencies stepping in on consumers’ behalf,” said FTC Chairwoman Edith Ramirez. “I am pleased that consumers are now being refunded their money and that AT&T has changed its mobile billing practices.”
The FTC determined that AT&T had placed unauthorized third-party charges on its customers' phone bills, often at a price of $9.99/month for ringtones and text message subscriptions that contained love tips, horoscopes, and 'fun facts'. AT&T is said to have kept at least 35% of the charges as profits.
AT&T has agreed to pay $80 million for refunds and notify current customers who were billed for unauthorized third-party charges of the refund program. Under the settlement, the company also significantly changed its process for third-party billing.
Epiq Systems, the refund administrator for the refund program, will begin mailing refund checks and applying credits to AT&T phone bills starting today.
More details at the link below...