Thursday, October 2, 2014
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

Regulators accuse T-Mobile of bogus billing

By
From page B8 | July 02, 2014 |

WASHINGTON — T-Mobile US knowingly made hundreds of millions of dollars off its customers in potentially bogus charges, federal regulators alleged Tuesday in the first lawsuit of its kind against a wireless provider.

The lawsuit by the Federal Trade Commission, which fueled a separate federal investigation, demands that T-Mobile refund the money to consumers for subscriptions to premium text services 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 alerted by other customers that the subscriptions were scams.

The announcement was a blow to the popular mobile phone provider, which had been making gains in the market by offering consumers flexible phone plans.

“It’s wrong for a company like T-Mobile to profit from scams against its customers when there were clear warning signs the charges it was imposing were fraudulent,” said FTC Chair Edith Ramirez in a statement. “The FTC’s goal is to ensure that T-Mobile repays all its customers for these crammed charges.”

In a statement, T-Mobile called the allegations “unfounded and without merit.”

“T-Mobile is fighting harder than any of the carriers to change the way the wireless industry operates, and we are disappointed that the FTC has chosen to file this action against the most pro-consumer company in the industry rather than the real bad actors,” said John Legere, the company’s CEO, in a statement.

The practice is often referred to as “cramming”: businesses stuff a customer’s bill with bogus charges associated with a third party. In this case, the FTC said, most T-Mobile customers never agreed to sign up for the services but were billed anyway.

T-Mobile says it tried to put consumer protections in place, but that many of the third-party vendors acted irresponsibly. The FTC counters that T-Mobile should have been tipped off that these text services were scams because of the high rate of customer complaints.

The FTC also alleges that T-Mobile often hid the charges, making it almost impossible for customers to protest. Regulators estimate that T-Mobile kept as much as 40 percent of the bogus charges, resulting in hundreds of millions of dollars.

The FTC told reporters in a conference call Tuesday that it had been in negotiations with T-Mobile for months in an attempt to guarantee refunds would be provided to customers but that the two sides couldn’t reach an agreement.

The Federal Communications Commission announced it would launch a separate investigation, which could result in heavy fines for T-Mobile if it confirms the FTC’s allegations.

T-Mobile appears to have been laying the groundwork to head off the federal complaint. Last November, the company announced it would no longer allow premium text services because they were waning in popularity and that not all vendors had acted responsibly. In June, with the FTC complaint imminent, T-Mobile announced it would reach out to customers and give them a chance to request a refund.

The FTC said consumers should contact their wireless provider if they fear they are a victim of cramming. They also can file a complaint with the FTC.

One way for consumers to try to prevent fraudulent charges is to ask their providers to block all third-party businesses from providing services on their phones.

Headquartered in Bellevue, Washington, T-Mobile US, Inc., is a publicly traded company. According to its website, Deutsche Telekom AG maintains a 67 percent ownership in the company’s common stock.

Sprint Corp., the third-largest cellphone carrier, is in talks to buy T-Mobile US Inc., according to published reports. Analysts believe such a link-up would face stiff opposition from the same regulators who blocked AT&T from buying T-Mobile in 2011.

T-Mobile’s stock fell 21 cents to close Tuesday at $33.41.

 

The Associated Press

The Associated Press

LEAVE A COMMENT

Discussion | No comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

.

Solano News

Head-on crash sends 2 to trauma centers

By Amy Maginnis-Honey | From Page: A1, 4 Comments | Gallery

 
 
Vacaville man earns Carnegie heroism medal

By Ian Thompson | From Page: A1 | Gallery

 
Mundy fifth-graders share their thoughts

By Mayrene Bates | From Page: A2

 
Veterans meet set in November

By Susan Hiland | From Page: A3

 
Solano Tea Party Patriots meet next week

By Susan Hiland | From Page: A3

Bevy of vintage warbirds expected at Nut Tree air show

By Ian Thompson | From Page: A3 | Gallery

 
 
Suisun City police log: Sept. 30, 2014

By Susan Hiland | From Page: A12

Weather for Thursday, Oct. 2, 2014

By Daily Republic staff | From Page: B12

 
Fairfield police log: Sept. 30, 2014

By Susan Hiland | From Page: A12

.

US / World

FBI turns animal cruelty into top-tier felony

By The Associated Press | From Page: A3

 
California Catholics challenge abortion order

By The Associated Press | From Page: A4

San Francisco expands free public Wi-Fi access

By The Associated Press | From Page: A4

 
Judge: Stockton must treat pension like other debt

By The Associated Press | From Page: A4

Mexico’s probe of army slayings raises doubts

By The Associated Press | From Page: B5

 
John Wayne’s heirs lose ‘Duke’ legal brawl

By The Associated Press | From Page: A5

Hong Kong protesters threaten to occupy buildings

By The Associated Press | From Page: B5

 
Man convicted of murder in killing over loud music

By The Associated Press | From Page: B5, 1 Comment

3 Afghan soldiers who fled say they can’t go home

By The Associated Press | From Page: B5

 
Poll: Divided voters still focus on economy

By The Associated Press | From Page: B5

Respiratory virus seen in 4 deaths; role unclear

By The Associated Press | From Page: B5

 
920 California chickens killed with golf club

By The Associated Press | From Page: A5

Liberia short on ambulances for Ebola patients

By The Associated Press | From Page: B5

 
Wife of slain Los Angeles-area mayor released

By The Associated Press | From Page: A5

Ebola patient told hospital he was from Liberia

By The Associated Press | From Page: B5

 
Caltrans: Bay Bridge tower rods exposed to water

By The Associated Press | From Page: A5

Secret Service chief quits due to security lapses

By The Associated Press | From Page: B5

 
2 children in Los Angeles County have enterovirus

By The Associated Press | From Page: A5

Palestinians: Israeli occupation must end in 2016

By The Associated Press | From Page: B5

 
Infant’s body found in California trash facility

By The Associated Press | From Page: A5

App teaches kindergartners basic computer coding

By The Associated Press | From Page: A12

 
2 white Ohio women sue over sperm from black donor

By The Associated Press | From Page: A12, 1 Comment

.

Opinion

 
Editorial Cartoon: Oct. 2, 2014

By Daily Republic Syndicated Content | From Page: A11

Crazy? Violent? Lose your guns

By Kelvin Wade | From Page: A11

 
It’s time to teach history

By Jay Ambrose | From Page: A11

Read this column ASAP or immediately

By Reg Henry | From Page: A11

 
Real reasons neighborhoods are in trouble

By Letter to the Editor | From Page: A11, 1 Comment

.

Living

Today in History: Oct. 2, 2014

By The Associated Press | From Page: A2

 
Community Calendar: Oct. 2, 2014

By Susan Hiland | From Page: A2

Horoscopes: Oct. 2, 2014

By Holiday Mathis | From Page: A9

 
Our son’s suicide has made us feel like outcasts in our community

By Kathy Mitchell and Marcy Sugar | From Page: A9

.

Entertainment

TVGrid

By Daily Republic Syndicated Content | From Page: B6

 
Lena Dunham launches tour for book of adult essays

By The Associated Press | From Page: A7

‘Interstellar’ to be released 2 days early on film

By The Associated Press | From Page: A7

 
Steinem: Domestic violence discussion a positive

By The Associated Press | From Page: A7

‘Orange is the New Black’ author talks Season 3

By The Associated Press | From Page: A7

 
Joy Behar to debut a 1-woman show in New York

By The Associated Press | From Page: A7

Tony Bennett sets mark as oldest act with No. 1 LP

By The Associated Press | From Page: A7

 
.

Sports

Bumgarner, Giants silence Pirates 8-0 to advance

By The Associated Press | From Page: B1 | Gallery

 
A’s part ways a day after 12-inning loss to Royals

By The Associated Press | From Page: B1 | Gallery

49ers prepare for familiar face in Chiefs Smith

By The Associated Press | From Page: B1 | Gallery

 
Raiders leave for bye after meeting with new coach

By The Associated Press | From Page: B1 | Gallery

College notebook: Former Falcon Williams tearing it up as Torero

By Paul Farmer | From Page: B1 | Gallery

 
Prep water polo: Rodriguez boys swim to 11-1 win over Armijo

By Daily Republic staff | From Page: B2

Prep girls tennis: Stybnarova earns victory at No. 1 singles

By Daily Republic staff | From Page: B2

 
 
Prep cross country: Armijo rolls to sweep at MEL center meet

By Daily Republic staff | From Page: B2

Drivers fear next round of NASCAR’s Chase

By The Associated Press | From Page: B2 | Gallery

 
JC volleyball: Solano wins twice in Falcons Classic

By Daily Republic staff | From Page: B2

JC women’s soccer: Sjoberg nets 2 goals as Solano ties Chabot

By Daily Republic staff | From Page: B2

 
Trout makes playoff debut when Angels host Royals

By The Associated Press | From Page: B3 | Gallery

 
Tigers hope starters can outdo Orioles bullpen

By The Associated Press | From Page: B3

Wambach, players file lawsuit over World Cup turf

By The Associated Press | From Page: B3

 
Oslo latest city to drop out of 2022 Olympic race

By The Associated Press | From Page: B3

Cardinals re-sign Fairfield High graduate Bishop

By Staff and wire reports | From Page: B3

 
LeBron warmly welcomed ‘home’ by Cleveland fans

By The Associated Press | From Page: B3

This date in sports history for Thursday, Oct. 2, 2014

By The Associated Press | From Page: B4

 
.

Business

Stocks start October with a drop

By The Associated Press | From Page: B6

 
GM looks to new vehicles, China to boost profit

By The Associated Press | From Page: B6

5 reasons bonds may be less safe than you think

By The Associated Press | From Page: B7

 
Why the bond market is more fragile than you think

By The Associated Press | From Page: B7

.

Obituaries

John ‘Bo’ M. Miller

By Nancy Green | From Page: A4

 
Laura M. Gerdes-Lemmons

By Nancy Green | From Page: A4

.

Comics

Sally Forth

By Daily Republic Syndicated Content | From Page: A8

 
Peanuts

By Daily Republic Syndicated Content | From Page: A8

Beetle Bailey

By Daily Republic Syndicated Content | From Page: A8

 
Dilbert

By Daily Republic Syndicated Content | From Page: A8

Rose is Rose

By Daily Republic Syndicated Content | From Page: A8

 
Get Fuzzy

By Daily Republic Syndicated Content | From Page: A8

For Better or Worse

By Daily Republic Syndicated Content | From Page: A8

 
Zits

By Daily Republic Syndicated Content | From Page: A8

Baldo

By Daily Republic Syndicated Content | From Page: A8

 
Baby Blues

By Daily Republic Syndicated Content | From Page: A8

Wizard of Id

By Daily Republic Syndicated Content | From Page: A8

 
Garfield

By Daily Republic Syndicated Content | From Page: A8

Pickles

By Daily Republic Syndicated Content | From Page: A8

 
B.C.

By Daily Republic Syndicated Content | From Page: A8

Frank and Ernest

By Daily Republic Syndicated Content | From Page: A8

 
Blondie

By Daily Republic Syndicated Content | From Page: A8

Sudoku

By Daily Republic Syndicated Content | From Page: A9

 
Word Sleuth

By Daily Republic Syndicated Content | From Page: A9

Crossword

By Daily Republic Syndicated Content | From Page: A9

 
Bridge

By Daily Republic Syndicated Content | From Page: A9

Cryptoquote

By Daily Republic Syndicated Content | From Page: A9