FTC Accuses T-Mobile of Knowingly Charging Customers for Fraudulent Services

The United States Federal Trade Commission today filed a complaint against T-Mobile, accusing the carrier of charging customers for unauthorized SMS subscriptions that delivered information like horoscopes and celebrity gossip at prices up to $9.99 per month.

T-Mobile reportedly collected 35 to 40 percent of the amount charged to consumers, at times continuing to bill customers even after it was clear the charges were fraudulent. According to the FTC, T-Mobile made "hundreds of millions of dollars" using these tactics.

t-mobile_usa_logo
The FTC suggests that the charges were unauthorized because of the high volume of T-Mobile customers seeking refunds. The company has allegedly received a high number of consumer complaints since 2012. T-Mobile is also said to have made it difficult to detect the charges, as a summary bill did not show a third-party charge or a recurring subscription. T-Mobile bills also made it "nearly impossible for consumers to find and understand third-party subscription charges."

After looking past a "Summary" section as well as an "Account Service Detail" section, both of which described "Usage Charges" but did not itemize those charges, a consumer might then reach the section labeled "Premium Services," where the crammed items would be listed.

According to the complaint, the information would be listed there in an abbreviated form, such as "8888906150BrnStorm23918," that did not explain that the charge was for a recurring third-party subscription supposedly authorized by the consumer.

T-Mobile also failed to provide full refunds to customers after the charges were discovered. The FTC is asking for a court order to prevent T-Mobile from continuing to charge customers for fraudulent services and to provide full refunds for its "ill-gotten gains."

T-Mobile has not yet commented on the FTC's complaint, but the company's outspoken CEO, John Legere, will undoubtedly have a response.

In recent months, T-Mobile has worked hard to distinguish itself from other mobile phone carriers with its "UnCarrier" initiatives designed to disrupt traditional mobile service. The company has uncoupled device costs from service costs, introduced a Jump upgrade plan, provided unlimited texting and 2G data in 100 countries, offered customers up to $350 to switch carriers, and announced plans to allow customers to "test drive" the service.

Update 1:30 PM PT: T-Mobile has released a statement calling the FTC's complaint "unfounded and without merit." T-Mobile goes on to state that it stopped billing for Premium SMS services last year and has launched a "proactive program" to provide full refunds for customers.

Popular Stories

Alleged iOS 19 Icons Front Page Tech

iOS 19 Leak Reveals Alleged New Design With Rounder App Icons, Floating Tab Bar, and More

Monday April 7, 2025 3:13 pm PDT by
YouTube channel Front Page Tech is back today with another video that provides a closer look at iOS 19's alleged design changes. The video contains re-created renders of iOS 19, which are allegedly based on real footage of the software update, provided by sources within Apple. Overall, iOS 19 is expected to have a more glass-like, visionOS-inspired design, with added translucency for user...
iPhone 17 Pro 3 4ths Perspective Aluminum Camera Module 1

iPhone 17 Pro's New Rear Camera Bar 'Same Color As Rest of Device'

Monday April 7, 2025 2:09 am PDT by
Apple's upcoming iPhone 17 Pro models will feature a redesigned rear camera panel that spans the width of the device, but it will be the same color as the iPhone itself, rather than being part of a two-tone design. That's according to Bloomberg's Mark Gurman. Writing in his latest Power On newsletter, the reporter says the iPhone 17 Pro won't have a two-toned back, as some renders have...
iphone x front back

Apple Planning 'Bold' New 20th Anniversary Design for 2027 iPhone Pro

Monday April 7, 2025 2:46 am PDT by
Apple is preparing a "major shake-up" for the iPhone's 20th anniversary in 2027, according to Bloomberg's Mark Gurman. iPhone X released in 2017 for 10th anniversary Writing in his latest Power On newsletter, Gurman says that Apple plans to launch a foldable iPhone alongside a "bold" new iPhone Pro model that makes more extensive use of glass. Could this mean Apple plans to realize former...
iPhone Assembly

Trump Believes Apple Could Manufacture iPhones in the U.S.

Tuesday April 8, 2025 12:08 pm PDT by
U.S. President Donald Trump "absolutely" believes that Apple could manufacture its iPhones and other devices in the United States, Press Secretary Karoline Leavitt said today during a media briefing. Leavitt was asked whether Trump thought that iPhone manufacturing is the kind of technology that could move to the U.S. "Absolutely, he believes we have the labor, we have the workforce, we have ...
iphone 16 pro colors 1

Is Now the Time to Upgrade Apple Devices Before Tariffs Lead to Price Increases?

Friday April 4, 2025 3:41 pm PDT by
If you have an older Apple device that you've been considering upgrading, you're probably wondering how the newly announced tariffs might impact prices going forward, and whether it's worth buying now before there's a price hike. Given analyst and economist responses to the tariffs, market panic, and Trump's stance on the current financial chaos, the answer is that making a purchase...
iPhone 17 Pro 3 4ths Perspective Aluminum Camera Module 1

5 Biggest Changes Rumored for iPhone 17 Pro

Tuesday April 8, 2025 2:38 am PDT by
Later this year, Apple will introduce the iPhone 17 series, which includes the iPhone 17 Pro and the iPhone 17 Pro Max, two new high-end flagship devices that will be sold alongside the regular iPhone 17 and an all-new ultra-thin iPhone 17 Air. If you have been holding out for the iPhone 17 Pro or its bigger sibling, here are five of the biggest changes, informed by the latest reports and...
Apple Vision Pro 2 Feature 2

Vision Pro 2 May Now Be in Production Ahead of Launch Later This Year

Tuesday April 8, 2025 9:13 am PDT by
The second-generation Apple Vision Pro may now be in mass production ahead of its rumored launch later this year, Chinese website IT Home today claims. Reporting on information from an unknown source, the website says that key components of the new Vision Pro, including panels, housings, and circuitry, have moved into mass production ahead of the product's purported release later in 2025....
iPhone 17 Pro 3 4ths Perspective Aluminum Camera Module 1

iPhone 17 Pro Models Rumored to Offer Dual Video Recording Feature in Camera App

Tuesday April 8, 2025 7:23 am PDT by
YouTube channel Front Page Tech on Monday shared renders of iOS 19's alleged new design. The end of the video also revealed a new feature that is supposedly planned for the iPhone 17 Pro models later this year: dual video recording. According to Front Page Tech host Jon Prosser, the iPhone 17 Pro and iPhone 17 Pro Max will allow users to record video with the front and rear cameras...

Top Rated Comments

chrisbru Avatar
141 months ago
T-Mobile is still a douchebag carrier.

T-Mobile doesn't make it easy when switching from pre-paid to post-paid. They treat you like a new customer (as though switching from a different carrier) and make you purchase new SIM cards at $10 a pop. WTF?

This seems like a silly complain compared to what its like at VZW and ATT
Score: 9 Votes (Like | Disagree)
Parasprite Avatar
141 months ago
That's it. I'm switching from T-mobile to AT&T

You're missing the sarcasm tag.
Score: 6 Votes (Like | Disagree)
godrifle Avatar
141 months ago
I switched from AT&T to T-mobile, for among other things, AT&T charging me for these kinds of purchases. Since moving to T-Mobile, i've not experienced anything other than a *substantially* lower bill. Hopefully they're looking at other carriers as well.
Score: 6 Votes (Like | Disagree)
gretafour Avatar
141 months ago
Sprint used this very "tactic" on me when I still had them. T-Mobile is at least shaking up the market, but let us not forget they are still a faceless corporation of a person who cannot go to jail.

Glad to see the regulators doing their job.
Score: 5 Votes (Like | Disagree)
donnaw Avatar
141 months ago
ATT did the same to me on my landline. It was supposed to be for 'tech services'. I had to call 3 months in a row and argue each month. "Are you sure you or someone else in your household didn't authorize this? ". BS. I've been in IT for 30 years. My son is a network expert and my husband is an engineer. I've been building computers for right at 30 years, developed software...between us we undoubtedly know more about computer hardware, software and networking than any 'tech service'.

I finally had to threaten to take my landline and mobile accounts elsewhere and threaten legal means to get the charges off. I then had to argue to get a block put on my numbers so it wouldn't happen again. "Well, if we do this you'll never be able to charge anything like this to your phone number again,". I've never charged a service to my phone number (or anything else for that matter) That's what my credit cards are for!! Like pulling teeth.

Watch your bills. They all do this because they get a cut of the pie.
Score: 3 Votes (Like | Disagree)
emvath Avatar
141 months ago
I've had T-mobile for my personal line for years now and have never experienced anything like this. That being said, if it is true....T-mobile would STILL be better than any other option in the US to me.
Score: 3 Votes (Like | Disagree)