AT&T to Pay $105 Million to Settle Mobile Cramming Suit

December 20, 2014

AT&T has agreed to pay $105 million to settle a lawsuit alleging that the company illegally billed customers for charges originated by other companies. The lawsuit was filed by the Federal Trade Commission and alleged that AT&T illegally billed customers for horoscopes, ring tones and love tips, a practice known as mobile cramming. According to the FTC, $80 million of the settlement will be refunded to customers. The lawsuit against AT&T is the seventh mobile cramming suit brought by the FTC since 2013.