T-Mobile has reached a settlement with the Federal Trade Commissions over a complaint that the carrier engaged in cramming additional charges onto customer bills. The settlement was announced by the FTC on Friday and will see T-Mobile pay at least $90 million.
In addition to full refunds to customers, T-Mobile will also pay a $4.5 million fine to the Federal Communications Commission and $18 million in fines and penalties to attorney generals in every state plus the District of Columbia.
“Mobile cramming is an issue that has affected millions of American consumers, and I’m pleased that this settlement will put money back in the hands of affected T-Mobile customers,” said FTC Chairperson Edith Ramirez. “Consumers should be able to trust that their mobile phone bills reflect the charges they authorized and nothing more.”
The FTC filed the suit against T-Mobile in July, alleging that the carrier was adding charges to bills for third-party services, such as horoscopes or celebrity gossip, without customer knowledge or consent. At the time, T-Mobile CEO John Legere called the allegations unfounded,
This is not the first complaint or settlement related to cramming that the FTC has pursued. AT&T agreed to a $105 million settlement in October over cramming charges.