Remember that time earlier this year when the Federal Trade Commission accused T-Mobile of charging customers for unwanted premium SMS subscriptions? Well today that matter is finally coming to an end.
The Federal Communications Commission has announced that T-Mobile will pay a $90 million settlement for charging its customers for third-party products and services that they didn’t want, aka “cramming.” The FCC says that until late 2013, T-Mobile customers were being charged for these unwanted services and that while T-Mo gave refunds to some users, it told others that there was nothing that it could do and still others were told to talk to the merchants themselves for refunds.
FCC Chairman Tom Wheeler issued a statement on T-Mobile’s settlement, describing it as “a win for consumers who have been victimized by cramming.”
Third-party SMS products and services can range in price from $0.99 to $14 per month, with the majority of customers were charged $9.99 per month. Obviously an extra $10 charge on your wireless bill for something that you didn’t ask for is unacceptable, and while it’s disappointing that T-Mo let this happen at all, at least John Legere and Co. are shelling out $90 million in payments and restitutions to make things right.