AT&T Customers to Receive More Than $88M in Refunds Following Mobile Cramming Settlement

AT&TThe United States Federal Trade Commission today announced that it is giving more than $88 million in refunds to 2.7 million AT&T customers who had unauthorized third-party charges added to their service bills, something better known as "mobile cramming."

The refunds come from a $105 million settlement AT&T paid the FTC back in October of 2014, after the carrier was accused of allowing third-party companies to bill customers for things like ringtone subscriptions without their consent. Money was also collected from Tatto and Acquinity, two companies involved in the cramming scheme.

Nearly 2.5 million AT&T customers can expect to receive a credit on their bill within the next 75 days, and over 300,000 former customers will be given refund checks. The FTC says the average refund amount customers will receive is $31, and checks are going out starting today.

"AT&T received a high volume of complaints related to mobile cramming prior to the FTC and other federal and state agencies stepping in on consumers' behalf," said FTC Chairwoman Edith Ramirez. "I am pleased that consumers are now being refunded their money and that AT&T has changed its mobile billing practices."

According to the FTC, the AT&T refunds being provided to customers represent the most money that's ever been returned to consumers in a mobile cramming case.

Up until late 2014, AT&T and several third-party companies were charging customers up to $9.99 per month for subscriptions that provided sham services like ringtones, horoscopes, love tips, and more, with AT&T keeping 35 percent of the money that was taken from its subscribers.

Other mobile carriers, such as T-Mobile, had similar cramming practices. Back in December of 2014, T-Mobile agreed to pay out $90 million in fines.

Recently, AT&T also agreed to pay out an additional $7.75 million for a separate issue that allowed scammers to charge AT&T customers $9 per month for a fake directory service.

Tags: AT&T, FTC

Top Rated Comments

imwoblin Avatar
94 months ago
Here's my last AT&T settlement check from September.
Yup, that's right. Eleven cents!

Attachment Image
Score: 18 Votes (Like | Disagree)
JosephAW Avatar
94 months ago
That means you'll receive a check for $3 and the lawyers will get $40 million
Score: 11 Votes (Like | Disagree)
PhillyGuy72 Avatar
94 months ago
Can't wait to get my check for $0.12!
Score: 9 Votes (Like | Disagree)
macsrcool1234 Avatar
94 months ago
probably pocket change compared to what they earned during that time
Score: 9 Votes (Like | Disagree)
unplugme71 Avatar
94 months ago
The penalties are complete ****. There's nothing to stop them from continuing to do things like this over and over again.


Earn 300 million, pay 75 million fine. What's the cost of business, like 25 million to create this extra revenue stream? So they still make 200 million profit. Hmm, lets keep doing **** like this!
Score: 8 Votes (Like | Disagree)
Larry-K Avatar
94 months ago
What's $88M for them? Not even a decent wrist slap.

Let me know when somebody actually goes to jail over this stuff.
Score: 8 Votes (Like | Disagree)

Popular Stories

Apple car wheel icon feature yellow

Apple Cancels Electric Car Project

Tuesday February 27, 2024 11:05 am PST by
Apple has canceled all plans to release an autonomous, electric vehicle, reports Bloomberg. Apple has been working on an Apple Car for more than a decade and invested millions of dollars into development before deciding it was not a viable project. Apple's Chief Operating Officer Jeff Williams today told approximately 2,000 employees working on the Apple Car that the project was canceled,...
iOS 18 Mock iPhone 16 Feature Gray

iOS 18 Rumored to Be Compatible With These iPhone Models

Tuesday February 27, 2024 6:31 am PST by
iOS 18 will be compatible with the iPhone XR, and thereby also the iPhone XS and iPhone XS Max models with the same A12 Bionic chip, according to a post on X today from a private account with a proven track record of sharing build numbers for upcoming iOS updates. The post was spotted by MacRumors contributor Aaron Perris, and it has since been deleted. However, this was likely because the...
iOS 17

iOS 17.4 Coming Soon With These New Features for Your iPhone

Monday February 26, 2024 6:08 am PST by
In a press release last month, Apple confirmed that iOS 17.4 will be released in March, and the update includes several new features and changes for the iPhone. Key new features in iOS 17.4 include major App Store changes in the EU, Apple Podcasts transcripts, and an iMessage security upgrade. The update also adds new emoji and includes preparations for the launch of next-generation CarPlay...
applearcade

Game Developers Describe 'Smell of Death' Around Apple Arcade

Monday February 26, 2024 7:24 am PST by
Some game developers are dissatisfied with Apple Arcade amid concerns about the subscription service's future, a new report claims. Sources speaking to mobilegamer.biz described a "smell of death" around Apple's games subscription service and noted the difference between the company's investment in TV and music, and its interest in games. "At the very top of the company there needs to be a ...
Beyond iPhone 13 Better Blue Face ID Single Camera Hole

Six Reasons to Wait for Next Year's iPhone 17

Thursday February 22, 2024 4:20 am PST by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models concurrently, which is why we sometimes get rumored feature leaks so far ahead of launch. The iPhone 17 series is no different, and already we have some idea of what to expect from Apple's 2025 smartphone lineup. If you plan to skip...
iPad Air 5

iPadOS 18 Rumored to Drop Support for These iPad Models

Tuesday February 27, 2024 6:55 am PST by
iPadOS 18 will drop support for iPad models equipped with the A10X Fusion chip, according to a post on X today from a private account with a proven track record of sharing build numbers for upcoming iOS and iPadOS updates. This means that iPadOS 18 would not be compatible with the first-generation 10.5-inch iPad Pro or the second-generation 12.9-inch iPad Pro models released in 2017. It...