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AT&T Is Paying $7.75 Million in Refunds and Fines Over Sham Calls (fortune.com)
AT&T will pay $7.75 million after a federal investigation found it allowed unauthorized third-party charges on its customers' telephone bills, the U.S. Federal Communications Commission said Monday, reports Reuters (via Fortune). From the report: The company allowed "scammers to charge customers approximately $9 per month for a sham directory assistance service," the FCC said Monday. The fraud was uncovered by the U.S. Drug Enforcement Administration while investigating two Ohio companies for drug-related crimes and money laundering, the FCC said. The settlement includes $6.8 million in refunds and a $950,000 federal fine, the FCC said. AT&T signed a consent decree with the FCC and agreed to cease billing for nearly all third-party products and services on landline bills and adopt procedures to obtain express consent from customers prior to allowing third-party charges. The company also agreed to revise its billing practices to ensure third-party charges are conspicuously identified on bills.
...committing blatant & obvious fraud on a nationwide level.
The law never sleeps!
If you and I did this through some business we owned, we would be charged with a dozen felonies. The prosecutor would have a field day over the fact that we obscured the nature of the charges to make it look like our legitimate business charges and did nothing to guarantee the charges were legitimate. Bottom line, we would go to jail.
AT&T? A fine so small that it is a rounding error on their SEC filings. And certainly not a hint of any criminal prosecution.
This is sham justice. AT&T should have been fined 10x the gross revenue they received from this little scam. The executives in charge of managing this scam should have been jailed for fraud, possibly even as co-conspirators in whatever drug investigation caused the DEA to find this operation.
They could have sent a message that said if you want to skim the cream with your billing operation, great, but make sure the billing is 100% legitimate or you will be held accountable for fraud.