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Federal Trade Commission Accuses T-Mobile Of Bogus Consumer Charges

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A T-Mobile store sign. (Peter Macdiarmid/Getty Images)

A T-Mobile store sign. (Peter Macdiarmid/Getty Images)

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WASHINGTON (CBS SF) _ The Federal Trade Commission is alleging that T-Mobile USA, Inc., made “hundreds of millions” of dollars off its customers through bogus charges on their bills, through a practice known as cramming.

In a complaint filed Tuesday, the FTC says the mobile phone provider billed consumers for subscriptions to “premium” texts such as $10-per-month horoscopes that were never authorized by the account holder. The FTC alleges that T-Mobile collected as much as 40 percent of the charges, even after being made aware that the subscriptions were scams.

FTC Chair Edith Ramirez said in a statement that the agency’s goal is to ensure T-Mobile repays its customers. She said there were, quote, “clear warning signs the charges it was imposing were fraudulent.”

© Copyright 2014 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.

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