T-Mobile to Pay $90M to Settle With FTC Over Cramming Accusation - MacRumorsOpen MenuShow RoundupsShow Forums menuVisit ForumsOpen Sidebar
Skip to Content

T-Mobile to Pay $90M to Settle With FTC Over Cramming Accusation

by

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
155 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)
155 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)
155 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
155 months ago
"Normal" people would go to jail for this, it's theft!
Score: 2 Votes (Like | Disagree)
Solomani Avatar
155 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
155 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

iPhone Duo Display Cracking

Apple Alerts Stores to iPhone Duo's Display Cracking Issue

Friday October 30, 2026 3:20 pm PDT by
In a memo shared with Apple Stores and Apple Authorized Service Providers this week, and later obtained by MacRumors, Apple provided technicians with guidance on how to diagnose and address the iPhone Duo's inner display cracking issue. If a customer reports the issue, Apple advised technicians to inspect the iPhone Duo and repair or replace it in accordance with their standard procedures....
iPad mini OLED feature 1

Apple Executive Comments on New iPad Mini Lacking 120Hz Display

Thursday October 29, 2026 1:47 pm PDT by
While the new iPad mini has an OLED display, the device does not support ProMotion, meaning the display's refresh rate is limited to 60Hz instead of 120Hz. ProMotion support would have allowed for the iPad mini's refresh rate to automatically adjust from 10Hz to 120Hz depending on the content being displayed, but evidently Apple has kept the feature exclusive to the iPad Pro among iPad...
Pinched iPad Mini

Apple Avoids Showing Pinched Fingers on iPad Mini Page in South Korea

Thursday October 29, 2026 11:52 am PDT by
In the U.S. and most other countries, Apple's website shows the new iPad mini being held by pinched fingers, but this is not the case in South Korea. The new iPad mini shown with pinched fingers on Apple's website in the U.S. On its South Korean website, Apple simply shows an image of the iPad mini on its own. The new iPad mini shown without pinched fingers on Apple's website in South Korea ...
Latest Stories
Apple Watch Ultra 4 Hits All-Time Low Price With Amazon's $99 Discount
Apple Watch Ultra 4 Hits All-Time Low Price With Amazon's $99 Discount
16 hours ago
Reminder: Apple's Big Discount on Beats 360 Ear Cushions Ends Today
Reminder: Apple's Big Discount on Beats 360 Ear Cushions Ends Today
17 hours ago
Here's a New Tour of Apple's HomeView Software
Here's a New Tour of Apple's HomeView Software
17 hours ago
Apple Reveals New iPad Mini's Battery Capacity
Apple Reveals New iPad Mini's Battery Capacity
18 hours ago
Top Stories: Apple's Big MacBook Pro, iPad mini and iMac Updates
Top Stories: Apple's Big MacBook Pro, iPad mini and iMac Updates
19 hours ago
'Pluribus' Season 2 Reportedly Starts Production Today
'Pluribus' Season 2 Reportedly Starts Production Today
1 day ago
iPhone 18 Pro Sales Surge in China, Offsetting Decline in U.S. and Japan
iPhone 18 Pro Sales Surge in China, Offsetting Decline in U.S. and Japan
1 day ago
HomeView Software 27.2: Wallpapers, Control Center, and More
HomeView Software 27.2: Wallpapers, Control Center, and More
1 day ago
Apple Alerts Stores to iPhone Duo's Display Cracking Issue
Apple Alerts Stores to iPhone Duo's Display Cracking Issue
1 day ago
iOS 27.3 Will Enable These Apple Intelligence Features in China
iOS 27.3 Will Enable These Apple Intelligence Features in China
1 day ago
Apple Says iOS 27.3 Beta Coming Next Week
Apple Says iOS 27.3 Beta Coming Next Week
1 day ago
Apple's Flash Storage Suppliers Are Finally 'Getting Their Revenge'
Apple's Flash Storage Suppliers Are Finally 'Getting Their Revenge'
2 days ago
14 New Things Your iPhone Can Do in iOS 27.2
14 New Things Your iPhone Can Do in iOS 27.2
2 days ago
iPhone Duo Review: One Week Later
iPhone Duo Review: One Week Later
2 days ago
Samsung Mocks iPhone Duo Display Cracks in New Ad Campaign
Samsung Mocks iPhone Duo Display Cracks in New Ad Campaign
2 days ago
The MacRumors Show: OLED MacBook Pro, iPad Mini 8, and More
The MacRumors Show: OLED MacBook Pro, iPad Mini 8, and More
2 days ago
MacBook Pro With Touch Display: 15 More Details Revealed
MacBook Pro With Touch Display: 15 More Details Revealed
2 days ago
Russia Places Apple on State Surveillance Registry
Russia Places Apple on State Surveillance Registry
2 days ago
Halloween Weekend Brings Discounts on Apple Accessories and Pre-Orders
Halloween Weekend Brings Discounts on Apple Accessories and Pre-Orders
2 days ago
Apple Has Released More Than 25 New Products in the Past Two Months
Apple Has Released More Than 25 New Products in the Past Two Months
2 days ago
Local Code Launches as Free, Private AI Assistant Tool for Mac
Local Code Launches as Free, Private AI Assistant Tool for Mac
2 days ago
Apple Acquires Ascend.io
Apple Acquires Ascend.io
2 days ago
HomePod Mini 2 Launches Today: All the New Features
HomePod Mini 2 Launches Today: All the New Features
2 days ago
AirTag 2 4-Pack Drops to New Low Price of $69.99
AirTag 2 4-Pack Drops to New Low Price of $69.99
2 days ago
Rian Johnson's iPhone Camera App Goes Viral
Rian Johnson's iPhone Camera App Goes Viral
2 days ago
Where Did All the iPhone Duos Go? Mostly to Apple's Stores
Where Did All the iPhone Duos Go? Mostly to Apple's Stores
2 days ago
Apple's Touchscreen MacBook Pro Could Ship 1.5M Units in 2027
Apple's Touchscreen MacBook Pro Could Ship 1.5M Units in 2027
2 days ago
New Apple TV 4K and iPad Mini: RAM Amounts Revealed
New Apple TV 4K and iPad Mini: RAM Amounts Revealed
2 days ago
Apple Executive Comments on New iPad Mini Lacking 120Hz Display
Apple Executive Comments on New iPad Mini Lacking 120Hz Display
3 days ago
Here's a Hands-On Look at HomePod Mini 2's New Two-Tone Colors
Here's a Hands-On Look at HomePod Mini 2's New Two-Tone Colors
3 days ago

🔗 Related Apple News & Rumors

Stay updated with the latest Apple ecosystem news and verified rumors