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October 10, 2014

Mass. receives $327K in AT&T settlement

AT&T has agreed to pay $105 million in a federal-state settlement over unauthorized cell phone charges, known as “mobile cramming,” with Massachusetts receiving $327,000, according to the state attorney general’s office.

The agreement stems from claims that the company “crammed” customer bills with additional charges. These charges were typically $9.99 per month, according to the attorney general’s office, and included services such as horoscopes, trivia and sports scores, that the consumers had never heard of or requested.

“Mobile cramming is a major problem that continues to harm consumers in Massachusetts,” Attorney General Martha Coakley said in a statement. “Addressing this issue of unauthorized charges should be a priority for the entire mobile telephone industry.”

Cases against Verizon, Sprint and T-Mobile for the same practices are ongoing, according to the attorney general’s office.

Under the terms of the settlement, AT&T Mobility is required to open an $80 million fund, administered by the Federal Trade Commission, to repay consumers who were victims of cramming.

AT&T Mobility also agreed to pay $20 million to state attorneys general offices and $5 million to the Federal Communication Commission.

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