United States - FTC Moves Against Massive Mobile Cramming Operation That Heaped Millions in Unwanted Charges on Consumers’ Bills

The Federal Trade Commission is has obtained a temporary restraining order as it takes action to stop a mobile phone cramming operation that has billed consumers tens of millions of dollars on their mobile phone bills without their permission. Operating through a number of companies, the defendants placed monthly subscription fees for so-called services like “love tips” and “fun facts” on consumers’ cell phone bills without authorization.  Defendants tricked consumers into providing their cell numbers through spurious website offers, including one claiming the consumer had won Justin Bieber tickets.  Many consumers thought the random messages they received were spam, not realizing that defendants were cramming recurring fees onto their cell phone bills, typically $9.99 per month.   The FTC is seeking preliminary and permanent injunctions and a variety of equitable relief to recover money paid by consumers. 

Information about what consumers should do if they notice mystery phone charges is available at the FTC website.These materials, as well as tips gathered in a blog post on how to beat a mobile cramming scam, may be adapted to help protect consumers in your jurisdiction.