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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.

2 of 66 comments (clear)

  1. 35% is not high enough! by MinamataHG · · Score: 4, Interesting

    Some people above just realized there are actually living in a corporatocracy. The rest is smoke and mirrors.

  2. Still waiting for my $250 refund from AT&T by Poisonous+Drool · · Score: 3, Interesting

    Good luck. AT&T crammed my bill for $250 and I'm still waiting for my check. It's been years.