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  • Judge Approves a $50 Million Settlement by Sprint for "Cramming" Practices


    Sprint, as part of a broader settlement over allegations of billing its customers for services they didnít want, had a $50 million settlement approved by a US judge with the Consumer Financial Protection Bureau. According to Reuters, just two months ago, in May, Sprint agreed to pay a total of $68 million to settle government complaints about so-called ďcrammingĒ practices. The same month though, US District Judge William Pauley in New York asked for more evidence of the dealís fairness before signing off on it.

    Apparently Sprint wasnít the only major wireless carrier that faced these accusations either. Verizon separately agreed to a $90 million settlement and in AT&T faced one for $105 million just last year. In Sprintís case, the $50 million portion of Sprintís payout should be going towards refunding money to subscribers with the remaining $18 million heading to state governments and fines sent to the US Treasury.

    For those of you who didnít know, victims of the issue saw bill entries for unauthorized third-party text messaging services such as horoscopes. In several cases, refunds were even denied even though the carrier couldnít prove that charges were authorized when confronted by the Federal Communications Commission. Sprint and Verizon did end up barring their offending messaging services and must not only ask for consent on future third-party charges but clearly label them on monthly statements and allow them to be blocked as well. Furthermore, the carriers will also be required to submit regular reports to the FCC on refunds and rule compliance.

    Source: Reuters
    This article was originally published in forum thread: Judge Approves a $50 Million Settlement by Sprint for "Cramming" Practices started by Akshay Masand View original post
    Comments 3 Comments
    1. nealh's Avatar
      nealh -
      What a joke these fines are pennies to these telecommunication corporations.
      I lump all of them together, because for the most part none of them care. Get a way with what you can and worry later.
      Pretty sad.
      Cramming of any sort, should be so punitively punished to remind them the consumer is never in the wrong, they are.
      My 2 cents worth.
    1. politicalslug's Avatar
      politicalslug -
      The fines all go to lawyers fees. The court should demand full refunds for all affected customers.
    1. WHUDS's Avatar
      WHUDS -
      Quote Originally Posted by politicalslug View Post
      The fines all go to lawyers fees. The court should demand full refunds for all affected customers.
      And how about each time require them to tell what they did and apologies on TV networks at least 3 times a day morn noon night prime time for 30 days.