R.I. to receive $220,000 from AT&T Mobility settlement

ATTORNEY General Peter F. Kilmartin announced that the state of Rhode Island will receive $220,000 as part of a settlement with AT&T Mobility over
ATTORNEY General Peter F. Kilmartin announced that the state of Rhode Island will receive $220,000 as part of a settlement with AT&T Mobility over "cramming" charges on cell phone bills. / COURTESY R.I. ATTORNEY GENERAL'S OFFICE

PROVIDENCE – Attorney General Peter F. Kilmartin said that the state of Rhode Island will receive $220,000 through a settlement with AT&T Mobility over “mobile cramming,” in which charges for third-party services on consumers’ mobile telephone bills that had not been authorized by the consumer are included.

Kilmartin said that along with his office, the Attorneys General of the other 49 states and the District of Columbia, the Federal Trade Commission and the Federal Communications Commission, all reached settlements with AT&T Mobility LLC that include a $105 million payment. The settlements resolve allegations regarding cramming by AT&T Mobility.

Consumers who have been “crammed” often complain about charges, typically $9.99 per month, for “premium” text message subscription services, such as horoscopes, trivia and sports scores that the consumers have never heard of nor requested.

The Attorneys General and federal regulators allege that cramming occurred when AT&T Mobility placed charges on consumers’ mobile telephone bills for these services without the consumers’ knowledge or consent.

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AT&T Mobility is the first mobile telephone provider to enter into a national settlement to resolve allegations regarding cramming. AT&T Mobility announced it would cease billing customers for commercial premium text message subscription charges last fall, as did other major carriers, Verizon, Sprint and T-Mobile.

“Many people never question the random charges and fees that appear on their mobile phone bills, but they should. Scam artists rely on people not looking too closely at the charges on their bill, and until now, mobile phone carriers have done little to protect the consumer from these bogus charges,” Kilmartin said in a statement.

“This settlement is a major victory for consumers who unknowingly may have signed up for premium text message services. Now, AT&T customers will be provided clear and easily defined billing statements with the ability to terminate and block unwanted cramming,” he added.

Under the terms of the settlements, AT&T Mobility is required to provide $80 million in funds to be used to pay refunds to consumers who were victims of cramming. The fund will be administered by the Federal Trade Commission.

AT&T Mobility also agreed to pay $20 million to the Attorneys General and $5 million to the Federal Communications Commission. The state of Rhode Island will receive approximately $220,000 for participating in the settlement.

AT&T issued the following statement in response to the settlement: “In the past, our wireless customers could purchase services like ringtones from other companies using premium short messaging services (PSMS) and we would put those charges on their bills. Other wireless carriers did the same.”

“While we had rigorous protections in place to guard consumers against unauthorized billing from these companies, last year we discontinued third-party billing for PSMS services. Today, we reached a broad settlement to resolve claims that some of our wireless customers were billed for charges from third-parties that the customers did not authorize. This settlement gives our customers who believe they were wrongfully billed for PSMS services the ability to get a refund,” AT&T’s statement read.

Beginning Wednesday, consumers can submit claims under the AT&T Mobility cramming refund program by visiting www.ftc.gov/att.

On that website, consumers can find information about how to obtain a refund. If consumers are unsure about whether they are eligible for a refund, they can visit the claims website or contact the claims administrator at (877) 819-9692 for information.

The settlement requires AT&T Mobility to stay out of commercial premium text message subscription services and also to only bill consumers for third-party charges that have been authorized.

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