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U.S. sues T-Mobile USA, alleges cramming of bogus charges on bills
July 1, 2014 / 6:45 PM / 3 years ago

U.S. sues T-Mobile USA, alleges cramming of bogus charges on bills

WASHINGTON, July 1 (Reuters) - The U.S. Federal Trade Commission filed a complaint against T-Mobile USA on Tuesday, alleging that the wireless provider added millions of dollars of unauthorized charges onto customers’ bills, a practice known as “cramming.”

The charges were for subscriptions for services like horoscopes or celebrity gossip, which often cost $9.99 a month. T-Mobile USA received 35 to 40 percent of the amount charged, the FTC said in its complaint.

The FTC also alleged that T-Mobile USA was refunding to up 40 percent of some of the charges in a given month, which the agency said should have been a signal to the wireless company that the charges were fraudulent.

T-Mobile USA did not immediately respond to requests for comment.

The complaint was filed in the U.S. District Court for the Western District of Washington. (Reporting by Diane Bartz, editing by Ros Krasny and Jim Loney)

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