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FTC: AT&T to pay $105M for bogus wireless charges

2 years 1 month 3 weeks ago October 08, 2014 Oct 8, 2014 Wednesday, October 08 2014 October 08, 2014 10:32 AM in News
Source: Associated Press
By: Jennifer C. Kerr

WASHINGTON - Telecom giant AT&T will pay a hefty $105 million to settle government charges that the company unlawfully billed wireless customers for tens of millions of dollars in bogus charges - a practice known as cramming.

The multi-agency settlement includes $80 million in customer refunds and $20 million in penalties and fees to 50 states and the District of Columbia.

In its complaint, the Federal Trade Commission said AT&T billed millions of customers for charges from third-party companies for services customers never asked to receive or were duped into subscribing to - things like horoscope texts or flirting tips. The fees, usually $9.99 a month, were not easy for customers to find on their bills.

A penalty of $5 million will be paid to the Federal Communications Commission.

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