COLUMBUS, Ohio – Ohio is expected to receive almost $583,000 from Sprint and Verizon to settle allegations that the carriers allowed phony charges on their customers’ monthly bills.
Federal regulators announced the nationwide settlement over “mobile cramming” on Tuesday. Verizon will pay $90 million, and Sprint will pay $68 million to settle the claims.
Consumers who have questions about the redress programs can call the program or visit the websites:
Verizon (888-726-7063)
Sprint (877-389-8787)
Regulators say the mobile giants partnered with third-party vendors that sell premium text messaging services, such as horoscopes and sports scores. But consumers who hadn’t signed up for the services were billed anyway, typically about $9.99 monthly.
“Under these settlements, consumers will receive money back for unauthorized charges, and the cell phone carriers will have to take a number of specific steps to ensure that this doesn’t happen again,” Ohio Attorney General Mike DeWine said in a statement from his office announcing the settlement.
Regulators said they launched an investigation after receiving numerous complaints that the carriers had refused to refund the charges.
Measures intended to halt the practice of cramming include requiring the carriers to get consumers’ consent before billing them for third-party charges, give costumers chance to obtain a full refund or credit when they are billed for unauthorized third-party charges, inform customers when they sign up for services that their mobile phone can be used to pay for third-party charges and how those charges can be blocked, and the companies have agreed to list third-party charges in a section of bills that clearly distinguishes them from the carrier’s own charges, DeWine said.
Sprint and Verizon are the third and fourth mobile telephone providers to enter into nationwide settlements to resolve cramming allegations.