RICHMOND, Va. — Sprint and Verizon Wireless will pay out customers who were “crammed” on their cellphone bills. The companies will pay $158 million as part of a government settlement after they were accused of placing “unauthorized, third-party charges” on customers’ cellphone bills, a practice known as mobile cramming.
“Consumers who have been ‘crammed’ often have charges, typically $9.99 per month, for ‘premium’text message subscription services such as horoscopes, trivia, and sports scores that the consumers have never heard of or requested,” Virginia Attorney General Mark Herring’s Office announced Tuesday. “The settlements provide meaningful relief for victims of these deceptive cramming practices, and will help put an end to this conduct.”
The wireless companies will pay the money directly to customers who were victims of cramming. You can submit claims online with both Sprint and Verizon. Sprint can be reached via phone at (877) 389-8787. Verizon can be reached at (888) 726-7063.
Sprint and Verizon must also take the following steps to prevent mobile cramming in the future:
The carriers must obtain consumers’ express consent before billing consumers for third-party charges, and must ensure that consumers are only charged for services if the consumers have been informed of all material terms and conditions of their payment;
The carriers must give consumers an opportunity to obtain a full refund or credit when they are billed for unauthorized, third-party charges;
The carriers must inform their customers when they sign up for services that their mobile phone can be used to pay for third-party charges, and must inform consumers of how those third-party charges can be blocked if the consumers do not want to use their phone to pay for third-party products; and
The carriers must present third-party charges in a dedicated section of consumers’ mobile phone bills, must clearly distinguish them from the carrier’s own charges, and must include in that same section information about the consumers’ ability to block third-party charges.
