Verizon and Sprint will pay $158 million to settle FCC billing complaint charges

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T-Mobile doesn't want you to settle for Verizon < > Galaxy S6 S6 Edge Google I/O Note 4 LG G4 ASUS ZenFone 2 HTC One M9 Android Auto Android Wear Wallpapers Pay up! Verizon and Sprint will pay $158 million to settle FCC billing complaint charges By John Callaham

Tuesday, May 12, 2015 at 1:25 pm EDT 24 Comments 31 133 81 0 Verizon Wireless and Sprint will pay a combined total of $158 million to settle billing complain charges filed by the Federal Communications Commission.

Under the terms of the settlement, Verizon will pay $90 million, while Sprint will have to spend $68 million, for a total of $158 million. At least $120 million of the total amount will go to reimbursing consumers hit with the charges.

The FCC said that both companies billed their customers for "unauthorized third-party premium text messaging services", which has become known under the term "cramming." The government agency previously settled a similar case with T-Mobile in 2014, for the price of $90 million. AT&T also agreed to pay $105 million to the FCC to settle its own "cramming" charges in 2014.

Source: FCC

John CallahamNews writer for Mobile Nations, along with being a Space: 1999 fan

"“Be yourself; everyone else is already taken.” Oscar Wilde"

Twitter Email 1 forum posts 883 articles Reader comments Verizon and Sprint will pay $158 million to settle FCC billing complaint charges 24 Comments Log In to Comment Register  

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geoff5093

Being billed for texting a number always seemed like a bad idea, not sure why the carriers even went along with that.

1 3 hours ago Reply

ScottJ

One word: Greed.

0 1 hour ago Reply

dovlek

Easy money

Posted via the Android Central App

0 3 hours ago Reply

mah-rpark

"Well before any government action, Verizon Wireless stopped allowing companies to place charges for premium text message services on customers' bills," Verizon spokesman Ed McFadden said in a statement."

...but, before any 'government action' they certainly weren't about to compensate the customers they already 'ripped-off' - according to well informed corporate observers.

2 3 hours ago Reply

l00natic71

To companies, it's only problem if the customer complains.

1 2 hours ago Reply

Gator352

Problem is, is that when the customer complained they were given the middle finger.

Posted via the Android Central App

1 1 hour ago Reply

Mariusz Ty

So then Verizon and Sprint added text service to customers without consent and took a cut from every charge added....

So basically all 4 carriers ware scamming people ?

1 3 hours ago Reply

Since9600

Every company did back then. Heck the Gambinos made over 500 million bucks a decade ago with old school phone cramming... Sometimes it really was a scam and sometimes it was dumb folks who signed up for "free trials" of texting services, ringtones, horoscopes etc.. Of course the free trials ended and people was charged over and over and over. However, phone companies (purposely) made it "hard" to notice the charges by not specifically itemizing them and making it harder to dispute the charge.

1 2 hours ago Reply

ibcop

That would be correct.

Posted via the Android Central App

1 2 hours ago Reply

moonoverparma00

Yep. One is not better than the other.

Posted via the Android Central App

0 2 hours ago Reply

ScottJ

It's best if all four are doing it, that way the customer doesn't get suspicious or tempted to go to another carrier that isn't doing it. It's similar to overdraft fees at the bank. They are almost 100% profit and there is tacit collusion as no bank comes forward and advertises a lower fee to try and win business.

0 1 hour ago Reply

ibcop

It's not like the carriers will actually be out the money - they will either pass on the costs to the consumers or write it off. They have ways so it's not going to hurt profits.

Posted via the Android Central App

0 2 hours ago Reply

Since9600

They all made a profit still anyway.. Back in the early 2000's those texting and subscription services were rampant. This was huge, Billions and Billions of dollars huge.. Heck even last year it was estimated at about 2 Billion dollars a year in the US. Phone companies took on average 30% - 40% of that as profit. I was never dumb enough to sign up for any of these stupid services.

1 2 hours ago Reply

flychinook

Many of the customers who were charged weren't "dumb enough" either. I saw plenty of customers who got slammed with the charges, and their usage records proved that they never sent a text to initiate the "service". There's not a doubt in my mind that these companies were just pulling numbers out of a hat and signing people up.

0 2 min ago Reply

orlandoeduran1

The government is the biggest crook when it comes to theft and deceit. They went after Verizon and sprint. Sprint won't have money now to do the same upgrades that were promised 2 years ago. Come on sprint, even thought sprint is garbage, they do bring competition and that benefits the consumer the best

0 2 hours ago Reply

metacuate

Sprint should have invested in infrastructure instead of cram bills Ruth this garbage. They deserve their situation.

Posted via the Android Central App

1 2 hours ago Reply

ScottJ

BS

0 1 hour ago Reply

avoidtheecho

I made sprint block that on my account. They shouldn't have to pay back anything. I noticed the charges when my sister would do it and sprint took them off every time.

Posted via the Android Central App

-1 2 hours ago Reply

almarsh78

Funny... I have had cell phone service since 1996 and have never been billed for a 3rd party charge like the ones being described in this lawsuit... Why you might ask... Because I can read. Though many of these 3rd party companies were a bit on the shady side when it comes to billing, most of them had terms and conditions that you had to agree to before billing occurred... Sure get this ring tone service free for 30 days but then agree to be billed $10 per month after. These lawsuits stem from the ignorance of the general population... It's a shame the carriers have to pay the price.

Posted via the Android Central App

-1 1 hour ago Reply

Gator352

No, not all. Some of these 3rd party vendors said to try free for 30 days of unlimited ringtones. You click on it and it would send a text with a link to download a ringtone. None of which had a disclaimer before you clicked yes. The only way to find the disclaimer was to visit the actual website which was never given.

Posted via the Android Central App

1 1 hour ago Reply

ScottJ

It's a shame that carriers thought their were entitled to make billions by exploiting human weakness. Greed, for lack of a better word, is not good.

0 1 hour ago Reply

flychinook

A lot of people who were billed for this crap never signed up for it.

0 10 sec ago Reply

roy ellis

Well now we know how Verizon nickels and dimes us to death.

0 1 hour ago Reply

acelucero75

And that's where the beauty of a no contract cellular plan comes into play. No hidden surprises.

Posted via the Android Central App

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