The FCC today said Sprint and Verizon Wireless have agreed to pay $158 million to settle charges that they fraudulently charged customers for third-party services — a tactic referred to as cramming.
Specifically, Sprint will pay a total of $68 million, $50 million of which will go back to customers, $14 million of which will go to state governments, and $2 million of which will go to the federal government. Verizon will pay $90 million, with $70 million to go to consumers, $16 million to states, and $4 million to the fed.
In addition to the fines, Sprint and Verizon agreed to a slew of other enforcement actions. They will no longer be allowed to offer premium SMS services. For all other services, they must: obtain clear consent before initiating charged, clearly mark charges on bills, and make it easy for customers to block such third-party services.
The FCC has been on a tear this year, coming down hard on companies that take advantage of consumers.
