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FCC to Fine Sprint $105 Million for Unauthorized Charges to Customers

The U.S. Federal Communications Commission (FCC) is planning to fine Sprint $105 million for the alleged unauthorized charges of unwanted text message alerts and other services. The amount is similar to the settlement paid by AT&T for the same allegations of mobile cramming.

An FCC official told the National Journal that the decision was made based on more than 35,000 complaints received by the telecommunications company between August and October 2013. The source added that three of the five FCC commissioners reviewing the proposed fine are planning to vote in favor of it. There is no information if Sprint is negotiating with FCC regarding the case.

Mobile cramming is the practice of placing unauthorized charges on customers' bills. Since 2013, the FCC has taken significant steps to combat this practice to protect the consumers. FCC Chairman Tom Wheeler explained that mobile cramming affects at least 20 million consumers per year. He also added that the agency is probing other wireless providers regarding this practice.

Customers stated that they were charged for services such as flirting tips, trivia and daily horoscopes that they never activated nor requested.

Those who felt that they were victims of the unauthorized charges would be eligible for compensation once Sprint pays the penalty, according to the Wall Street Journal.

Both FCC and Sprint declined to comment on the news.

Aside from AT&T and Sprint, T-Mobile was also accused of mobile cramming in July. As a result, the company reimbursed its customers a total of $50 million, or $40 million per customer under a condition that it would release any legal claims against the company. None of the companies admitted to the violation and clarified that they chose to pay just to settle the case.

Tags
Fcc, Sprint, Fine, Cellphones
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