Network CEO slams FTC, FCC allegations as baseless
>By Shaun Nichols
The Register, 1 Jul 2014
T-Mobile US was accused today of slapping bogus text-message charges worth hundreds of millions of dollars on customers’ bills.
The Federal Trade Commission (FTC) has filed suit against the carrier, and the Federal Communications Commission (FCC) has opened an investigation. The agencies alleged the company allowed users to be charged for premium text messages without their knowledge or against their will.
The FTC suit [PDF] claims that between 2009 and 2013, T-Mobile US allowed third-party companies to add monthly charges to bills of which T-Mobile collected a 35 to 40 per cent share. When customers complained or disputed the charges, T-Mobile often ignored or disregarded consumer complaints as it was profiting from the charges, it is claimed.