Earlier this year, the United States Federal Trade Commission filed a complaint against T-Mobile, accusing the carrier of "cramming" or charging customers for unauthorized SMS subscriptions that delivered information like horoscopes for prices up to $9.99 per month.

Though T-Mobile initially called the FTC's complaint "unfounded and without merit," it today reached a settlement [PDF] that will see it paying out more than $90 million to consumers that were affected by its practices. The carrier will also be required to inform all current and former customers who paid the illicit charges about the refund program.

t-mobile_usa_logo
In a statement, FCC Chairman Tom Wheeler praised the settlement as a win for consumers and pledged to continue to fight "unjust and unreasonable business practices committed by the nation's carriers."

"Cramming is a significant problem. For too long, millions of consumers have been scammed billed for bogus charges on their phone bills for services they didn't request. This is unacceptable. Today's settlement is a win for consumers who have been victimized by cramming. It means compensation for T-Mobile customers who were fraudulently billed for third-party services that they did not want or authorize. And it goes one step further. Today's action will also help protect all of T-Mobile's customers from bogus third-party charges in the future."

Along with T-Mobile, several other carriers have been targeted by the FTC for the same unsavory practices. AT&T paid out $105 million in penalties in October, and Sprint is facing a similar fine. In a statement released earlier this year, T-Mobile said that it stopped billing for Premium SMS services in 2013 and had already put a "proactive program" in place to provide full refunds for customers, but the government found that many customers went uncompensated.

Along with providing refunds for customers, T-Mobile's $90 million fine will also include $18 million in fines to attorneys in all 50 states plus the District of Columbia and a $4.5 million fine to be paid to the Federal Communication Commission.

News of T-Mobile's settlement comes just days after the company announced an eighth Un-carrier initiative, which will allow customers to roll over monthly unused data, storing it for up to 12 months.

Top Rated Comments

ArtOfWarfare Avatar
144 months ago
"Normal" people would go to jail for this, it's theft!

Eh. I'm not a big fan of sending people to jail. If all that they did was steal small amounts of money from large amounts of people, I'm content with them simply paying all those people back, plus interest.
Score: 7 Votes (Like | Disagree)
soheilk Avatar
144 months ago
In this case, yes, because the question would be who would get sent to jail over this? The CEO? The accountant that allowed this? The list goes on and one and then becomes which one?

So, yes, it is a lot simpler to require them to pay restitution than to sort these things out.

So, next time I'm doing something illegal I just have to make sure I have a big corporation supporting me?:D I never learned how corporations work in this country...
Score: 2 Votes (Like | Disagree)
cmwade77 Avatar
144 months ago
So they can pay their way out of illegal activity ?
In this case, yes, because the question would be who would get sent to jail over this? The CEO? The accountant that allowed this? The list goes on and one and then becomes which one?

So, yes, it is a lot simpler to require them to pay restitution than to sort these things out.
Score: 2 Votes (Like | Disagree)
justperry Avatar
144 months ago
"Normal" people would go to jail for this, it's theft!
Score: 2 Votes (Like | Disagree)
Solomani Avatar
144 months ago
Awesome! I await my $26 check in the mail, thank you class action suit lawyers. Hopefully the check will arrive in the next 12 months.
Score: 1 Votes (Like | Disagree)
paulbennett95 Avatar
144 months ago
So, next time I'm doing something illegal I just have to make sure I have a big corporation supporting me?:D I never learned how corporations work in this country...
You can't and shouldn't arrest anyone for this, that's the point of a corporation, the corporation acts on behalf of all the share holders so any individual risk is mitigated.

They took the best course of action by making the corporation (and all the share holders) pay back any monetary damages. Unless the CEO made a decree that scamming customers is their priority, he can't and shouldn't be arrested.
Score: 1 Votes (Like | Disagree)

Popular Stories

maxresdefault

Where's the New Apple TV?

Monday December 22, 2025 11:30 am PST by
Apple hasn't updated the Apple TV 4K since 2022, and 2025 was supposed to be the year that we got a refresh. There were rumors suggesting Apple would release the new Apple TV before the end of 2025, but it looks like that's not going to happen now. Subscribe to the MacRumors YouTube channel for more videos. Bloomberg's Mark Gurman said several times across 2024 and 2025 that Apple would...
iPhone Top Left Hole Punch Face ID Feature Purple

iPhone 18 Pro Launching Next Year With These 12 New Features

Tuesday December 23, 2025 8:36 am PST by
While the iPhone 18 Pro and iPhone 18 Pro Max are not expected to launch for another nine months, there are already plenty of rumors about the devices. Below, we have recapped 12 features rumored for the iPhone 18 Pro models. The same overall design is expected, with 6.3-inch and 6.9-inch display sizes, and a "plateau" housing three rear cameras Under-screen Face ID Front camera in...
iOS 26

iOS 26.2 Adds These 8 New Features to Your iPhone

Monday December 22, 2025 8:47 am PST by
Earlier this month, Apple released iOS 26.2, following more than a month of beta testing. It is a big update, with many new features and changes for iPhones. iOS 26.2 adds a Liquid Glass slider for the Lock Screen's clock, offline lyrics in Apple Music, and more. Below, we have highlighted a total of eight new features. Liquid Glass Slider on Lock Screen A new slider in the Lock...
iOS 26

iOS 26.3 Brings AirPods-Like Pairing to Third-Party Devices in EU Under DMA

Monday December 22, 2025 3:20 pm PST by
The European Commission today praised the interoperability changes that Apple is introducing in iOS 26.3, once again crediting the Digital Markets Act (DMA) with bringing "new opportunities" to European users and developers. The Digital Markets Act requires Apple to provide third-party accessories with the same capabilities and access to device features that Apple's own products get. In iOS...
top stories 2025 12 20

Top Stories: iOS 26.3 Beta, Major Apple Leaks, and More

Saturday December 20, 2025 6:00 am PST by
You'd think things would be slowing down heading into the holidays, but this week saw a whirlwind of Apple leaks and rumors while Apple started its next cycle of betas following last week's release of iOS 26.2 and related updates. This week also saw the release of a new Apple Music integration with ChatGPT, so read on below for all the details on this week's biggest stories! Top Stories i...
Apple Wallet ID Illinois

Apple Plans to Expand iPhone Driver's Licenses to These 7 U.S. States

Wednesday December 24, 2025 8:40 am PST by
In select U.S. states, residents can add their driver's license or state ID to the Apple Wallet app on the iPhone and Apple Watch, and then use it to display proof of identity or age at select airports and businesses, and in select apps. The feature is currently available in 13 U.S. states and Puerto Rico, and it is expected to launch in at least seven more in the future. To set up the...
iPhone Top Left Hole Punch Face ID Feature Purple

iPhone 18 Pro Features Leaked in New Report, Including Under-Screen Face ID

Tuesday December 16, 2025 8:44 am PST by
Next year's iPhone 18 Pro and iPhone 18 Pro Max will be equipped with under-screen Face ID, and the front camera will be moved to the top-left corner of the screen, according to a new report from The Information's Wayne Ma and Qianer Liu. As a result of these changes, the report said the iPhone 18 Pro models will not have a pill-shaped Dynamic Island cutout at the top of the screen....
iPhone Fold Vertical Feature

Why Apple's Foldable iPhone May Be Smaller Than Expected

Tuesday December 23, 2025 5:21 am PST by
Apple's first foldable iPhone, rumored for release next year, may turn out to be smaller than most people imagine, if a recent report is anything to go by. According to The Information, the outer display on the book-style device will measure just 5.3 inches – that's smaller than the 5.4-inch screen on the ‌iPhone‌ mini, a line Apple discontinued in 2022 due to poor sales. The report has led ...
iPhone Chips

Apple Clings to Samsung as RAM Prices Soar

Monday December 22, 2025 6:17 am PST by
Apple is significantly increasing its reliance on Samsung for iPhone memory as component prices surge, according to The Korea Economic Daily. Apple is said to be expanding the share of iPhone memory it sources from Samsung due to rapidly rising memory prices. The shift is expected to result in Samsung supplying roughly 60% to 70% of the low-power DRAM used in the iPhone 17, compared with a...