Sprint, Verizon To Pay $158M Over Pony Charges; $120M To Be Used In Paying Back Subscribers
Adelyn Torralba | | May 13, 2015 01:47 AM EDT |
(Photo : Reuters) Sprint has started releasing the Android 6.0 Marshmallow update for Samsung Galaxy Note 5 devices.
Sprint Corp. and Verizon Communications Inc. are now facing a humungous amount of bill as The Federal Communications Commission (FCC), Attorney General of 50 States plus the District of Columbia orders both telecommunication company to pay US$68 million and US$90 million, respectively. This amount is to patch up the charges for unauthorized texting services that they charge their subscribers, Nebraska Attorney General's office announced yesterday, May 12.
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According to allegations, Sprint and Verizon charged third-party services such "premium text" on their subscribers' bill, which is typically priced at $9.99 a month. Known as mobile cramming, this practice have been irking all telecommunications company. This practice allows carriers to charge subscription services such horoscope, daily sports scores and daily trivia to their subscribers, which are not really authorized.
According to NBC News, FCC cited that numerous consumers complained as both companies are not giving refunds, even if these carriers do not have or can not present any evidence or proof that their subscribers authorized such charge. Though in a contradicting statement, Verizon and Sprint said Tuesday that they have removed such premium services and that they have refunded those were wrongfully billed.
Sprint Spokesman Jeffrey Silva said in a statement that they have refunded "tens of millions of dollars" to those consumers who think that they were wrongfully billed, for services they never really authorized, Reuters reported. Silva added that their goal is to improve their customer service and make sure that their consumers will get the best customer experience.
Meanwhile, Debra Lewis of Verizon Wireless said in the statement that the settlement only proves they are "putting customers first." She added that they are now more focused in protecting their consumers from false bill charges.
According to reports, out of the $158 Million settlement from both carriers, $120 million will be given back to all their consumers, $28 million for state governments and $10 million will be paid as fines.
It can be noted that this is not the first time carriers were fined and charged for cramming, as AT&T and T-Mobile was once fined in 2014 for $105 million and $90 million, respectively.
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