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Verizon, Sprint Agree To Pay Combined $158 Million Over Cramming Charges

Posted by Soulskill on from the now-only-incredibly-profitable-instead-of-ridiculously-profitable dept.

mpicpp sends news that Verizon has agreed to pay $90 million (PDF), and Sprint another $68 million (PDF), to settle claims that they placed unauthorized charges on their customers's bills. The process, known as "cramming," has already cost T-Mobile and AT&T settlements in the tens of millions as well. Most of the settlement money will go towards setting up refund programs, but Verizon and Sprint will be able to keep 30% and 35% of the fees they collected, respectively. In response to the news, both companies issued vague statements about "putting customers first." They are now banned from charging for premium text message services and must set up systems to ensure informed consent for third-party charges.

6 of 66 comments (clear)

  1. That'll Show 'Em by tapspace · · Score: 5, Insightful

    No doubt these meager fines will deter such practices in the future...

    1. Re:That'll Show 'Em by Anonymous Coward · · Score: 5, Insightful

      Hey, that's not fair. They worked hard for that money, it's not like the people with the phones will miss it, now is it? They didn't work hard for it, otherwise they would have been running their own businesses, rather than working for someone else. What right has the government got to be involved in private business, anyway? (Insert other such stupidies as required.)

    2. Re:That'll Show 'Em by Fwipp · · Score: 5, Insightful

      Total revenue from cramming: $X
      Total fees: $X * 0.65
      Revenue after getting caught doing an illegal thing: $X * 0.35

      With penalties like these, there's not even a risk/reward calculation. If you break the law and don't get caught, you're way ahead. But if you break the law and get caught, you're still ahead. There's literally no reason *not* to be evil.

    3. Re:That'll Show 'Em by Anonymous Coward · · Score: 5, Insightful

      So let me get this right,

      If I rob a bank and take $100 Million dollars

      a) There would be no prison time for the crime
      b) I get to keep $35 Million for my efforts

      So, if Corporates are people too, surely people can be corporates and treated "fairly" too

    4. Re:That'll Show 'Em by TheRaven64 · · Score: 3, Insightful

      And yet, when the EU (which understands this and makes fines sufficiently large to discourage the behaviour) goes after a US corporation, there are cries of the EU just being jealous of the success of US companies and wanting their cut of the revenue.

      --
      I am TheRaven on Soylent News
  2. They get to keep some? by NoKaOi · · Score: 4, Insightful

    Verizon and Sprint will be able to keep 30% and 35% of the fees they collected

    WHAT THE FUCK? So pretty much they do something illegal, and only have to give part of the proceeds back?
    Found the question mark:
    1. Commit fraud
    2. Get caught
    3. Bribe^H^H^H Lobby politicians
    4. PROFIT!