Cramming

AT&T to Issue $88 Million in Consumer Refunds for Mobile Cramming

December 12, 2016 The Federal Trade Commission (“FTC”) has announced an historic consumer refund initiative to provide relief to millions of AT&T Mobility, LLC (“AT&T”) customers that were the subject of mobile cramming.  The settlement arises out of a mobile cramming-related lawsuit against not only AT&T, but also Tatto, Inc. (“Tatto”) and Acquinity Interactive, LLC …

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Feds Crack Down on Massive Text Message Consumer Fraud Scheme

September 17, 2015 This week, the United States Attorney for the Southern District of New York, in collaboration with the Internal Revenue Service and Federal Bureau of Investigation, announced several arrests of executives at mobile aggregation companies and mobile content providers. The arrests follow a federal investigation of the individuals’ participation in a scheme that …

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Verizon and Sprint to Pay In Excess of $200 Million for Cramming

May 12, 2015 This week, federal regulators announced a series of high profile settlements concerning alleged cramming activities from some of the nation’s largest wireless carriers. The Federal Communications Commission announced that Verizon Wireless has agreed to pay $90 million and Sprint Corp. (“Sprint”) has agreed to pay $68 million in settlement of investigations initiated …

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T-Mobile Settles Cramming Action for $90 Million

December 23, 2014 On December 19, 2014, the Federal Trade Commission (“FTC”) issued a press release announcing a settlement with T-Mobile USA, Inc. (“T-Mobile”) concerning alleged practices of illegal cramming.  Among other provisions, the terms of the settlement require that T-Mobile issue full refunds to those of its customers who were charged for third-party services …

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Consumer Financial Protection Bureau Targets Sprint for Illegal Cramming

December 22, 2014 On December 17, 2014, the Consumer Financial Protection Bureau (“CFPB”) filed a lawsuit against Sprint Corporation (“Sprint”) alleging that Sprint illegally crammed third-party charges on its customers’ cellular telephone bills.  The lawsuit, filed in the United States District Court for the Southern District of New York, marks the first brought by the …

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Online Marketers Settle Telemarketing and Cramming Lawsuit for $10 Million

October 23, 2014 On October 22, 2014, the Federal Trade Commission (“FTC”) announced that it had settled a long-standing case against a group of defendants that allegedly engaged in text message, robocall and cramming schemes involving offers for “free” merchandise.  The combined settlement amount comes to approximately $10 million and will be enforced against a …

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AT&T Mobility Enters into $105 Million Settlement with FTC for Alleged Mobile Cramming

October 10, 2014 Earlier this week, AT&T Mobility, LLC (“AT&T) entered into a Stipulated Order for Permanent Injunction and Monetary Judgment with the Federal Trade Commission (“FTC”) relating to allegations of mobile “cramming,” the unlawful practice of placing unauthorized third-party charges on mobile telephone bills. $105 Million Mobile Cramming Settlement As part of the settlement, …

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Mobile Marketing Principal Settles Cramming Lawsuit for $97 Million

In June, we informed you of the Federal Trade Commission’s (“FTC”) settlement with mobile marketer Tatto, Inc. and other third-party entities.  (See Mobile Marketing Companies Settle FTC Mobile Cramming Lawsuit for $150 Million).  The FTC has now settled its claims against Tatto’s principal, Andrew Bachman.  In total, the settlement with Mr. Bachman is a whopping …

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