Saturday, April 25, 2015
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

Transportation leaders point to need for funding changes

By Kevin W. Green | From Page: A1, 1 Comment | Gallery

 
Together to remember children lost to violence

By Ryan McCarthy | From Page: A1 | Gallery

 
‘Cinderella’ carries on despite theater flood

By Bill Hicks | From Page: A3 | Gallery

 
3 letters to Vacaville may cost $100,000 to answer

By Ryan McCarthy | From Page: A3

 
Church offers free Southern Gospel concert

By Susan Hiland | From Page: A3

Summer Spare the Air season set to start

By Kevin W. Green | From Page: A3

 
Suisun City police log: April 23, 2015

By Susan Hiland | From Page: A9

Fairfield police log: April 23, 2015

By Susan Hiland | From Page: A9

 
Commercial weight loss programs come under scrutiny

By Scott Anderson | From Page: B10

Food often a conduit to something more

By Murray Bass | From Page: B10

 
.

US / World

San Francisco Catholics deeply divided over archbishop

By The Associated Press | From Page: A1 | Gallery

 
Colleges starting to offer brewing courses

By The Associated Press | From Page: A2

Hate crime charges for homeless beating suspect

By The Associated Press | From Page: A3

 
Supreme Court ruling keeps sex offender registration in place

By The Associated Press | From Page: A5

SFPD to pay for settlement of wrongful termination suit

By The Associated Press | From Page: A5

 
16 students injured when school stage collapses

By The Associated Press | From Page: A5

Thousands march to mark anniversary of Armenian massacres

By The Associated Press | From Page: A5

 
Man ordered to stand trial for kidnap, rape charges

By The Associated Press | From Page: A5

Nuclear launch officers charged in drug case

By The Associated Press | From Page: A5

 
Rubio looking to gain support in Iowa

By The Associated Press | From Page: A6

Hep C, HIV cases spike throughout Indiana

By The Associated Press | From Page: A6

 
Obama uses hospital funds to help push for Medicaid expansion

By The Associated Press | From Page: A6

Hawaii raises smoking age to 21

By The Associated Press | From Page: A6

 
Police: Gray should have received medical treatment

By The Associated Press | From Page: A10

US completing review of hostage policy following drone strikes

By The Associated Press | From Page: A12

 
Italy police arrest nine terror suspects in sweep

By The Associated Press | From Page: A12

Yemen rebels ordered to pull back

By The Associated Press | From Page: A12

 
.

Opinion

 
Chaos in the primaries

By Thomas Sowell | From Page: A8, 1 Comment

Joy of baseball back in my life

By Deon Price | From Page: A8

 
.

Living

Today in History: April 25, 2015

By The Associated Press | From Page: A2

 
Community Calendar: April 25, 2015

By Susan Hiland | From Page: A2

Horoscopes: April 25, 2014

By Holiday Mathis | From Page: B5

 
Daughters’ ex is determined to turn their children against her

By Kathy Mitchell and Marcy Sugar | From Page: B5

.

Entertainment

Seriously silly, Monty Python reunites for a weekend tribute

By The Associated Press | From Page: B7 | Gallery

 
TVGrid

By Daily Republic Syndicated Content | From Page: B7

.

Sports

SCC baseball team wins to claim share of BVC title

By Daily Republic staff | From Page: B1, 2 Comments

 
Ynoa, Butler send Rockies to 6-4 win over Giants

By The Associated Press | From Page: B1

Vikings fall to Jaguars 4-3 in 8 innings

By Paul Farmer | From Page: B1

 
After working OT in NBA playoffs, Curry, Rose can earn rest

By The Associated Press | From Page: B1

Swafford, Weekley atop Zurich Classic leaderboard

By The Associated Press | From Page: B2

 
Logano wins pole at Richmond, his third of the season

By The Associated Press | From Page: B2

Usain Bolt: Gay’s reduced doping ban sends wrong message

By The Associated Press | From Page: B2

 
Scott Dixon is chasing IndyCar wins leaders, not spotlight

By The Associated Press | From Page: B2

Ducking the spotlight, some stars decide to skip NFL draft

By The Associated Press | From Page: B2

 
Garber: MLS plan in 6 months to expand beyond 24 teams

By The Associated Press | From Page: B2

 
Dortmund, American Pharoah vie for favorite in 141st Derby

By The Associated Press | From Page: B2

Harden, Howard lead Rockets to 130-128 win, 3-0 lead on Mavs

By The Associated Press | From Page: B2

 
Olympic sailing events may be moved from Rio’s polluted bay

By The Associated Press | From Page: B2

Canadian Henderson shoots tournament record for LPGA lead

By The Associated Press | From Page: B2

 
Bowyer and Stewart looking for good runs at Richmond

By The Associated Press | From Page: B2

Oregon wins distance medley relay at Penn Relays

By The Associated Press | From Page: B2

 
Goodell: LA projects viable for bringing back team

By The Associated Press | From Page: B2

Former Buckeyes teammates Cook, Sindelar top Legends of Golf

By The Associated Press | From Page: B2

 
Signups for Saturday, April 25, 2015

By Paul Farmer | From Page: B3

.

Business

Winners and losers of the demise of the big Comcast deal

By The Associated Press | From Page: B6

 
What could McDonald’s do to fix its business?

By The Associated Press | From Page: B6 | Gallery

Durable goods orders up, but business investment falls again

By The Associated Press | From Page: B6

 
Harley recalls nearly 46,000 motorcycles

By The Associated Press | From Page: B6

Comcast abandons Time Warner Cable bid after gov’t pushback

By The Associated Press | From Page: B6 | Gallery

 
Cheaper fuel has airlines soaring to record profits

By The Associated Press | From Page: B6

Wynn Resorts shareholders: Elaine Wynn won’t return to board

By The Associated Press | From Page: B6

 
Ford recalls 390,000 cars to fix door latches

By The Associated Press | From Page: B6

.

Obituaries

Kirk Noonan

By Nancy Green | From Page: A4

 
Sandra King

By Nancy Green | From Page: A4

Elizabeth Cepeda

By Nancy Green | From Page: A4, 1 Comment

 
.

Comics

Frank and Ernest

By Daily Republic Syndicated Content | From Page: B4

 
B.C.

By Daily Republic Syndicated Content | From Page: B4

Pickles

By Daily Republic Syndicated Content | From Page: B4

 
Wizard of Id

By Daily Republic Syndicated Content | From Page: B4

For Better or Worse

By Daily Republic Syndicated Content | From Page: B4

 
Beetle Bailey

By Daily Republic Syndicated Content | From Page: B4

Zits

By Daily Republic Syndicated Content | From Page: B4

 
Baby Blues

By Daily Republic Syndicated Content | From Page: B4

Get Fuzzy

By Daily Republic Syndicated Content | From Page: B4

 
Blondie

By Daily Republic Syndicated Content | From Page: B4

Baldo

By Daily Republic Syndicated Content | From Page: B4

 
Rose is Rose

By Daily Republic Syndicated Content | From Page: B4

Dilbert

By Daily Republic Syndicated Content | From Page: B4

 
Peanuts

By Daily Republic Syndicated Content | From Page: B4

Sally Forth

By Daily Republic Syndicated Content | From Page: B4

 
Garfield

By Daily Republic Syndicated Content | From Page: B4

Cryptoquote

By Daily Republic Syndicated Content | From Page: B5

 
Bridge

By Daily Republic Syndicated Content | From Page: B5

Crossword

By Daily Republic Syndicated Content | From Page: B5

 
Sudoku

By Daily Republic Syndicated Content | From Page: B5

Word Sleuth

By Daily Republic Syndicated Content | From Page: B5

 
.

Home Seller 4/25/2015

Ask a Designer: decorating with spring pastels

By The Associated Press | From Page: HSR1 | Gallery

Average US rate on 30-year mortgage slips to 3.65 percent

By The Associated Press | From Page: HSR3

Real estate transactions for April 25, 2015

By Daily Republic | From Page: HSR3