WJTV News Channel 12 - FTC: T-Mobile made millions with bogus charges

FTC: T-Mobile made millions with bogus charges

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By ANNE FLAHERTY
Associated Press

WASHINGTON (AP) - The Federal Trade Commission is alleging that T-Mobile USA, Inc., made "hundreds of millions" of dollars off its customers through bogus charges.

In a complaint filed Tuesday, the FTC says the mobile phone provider billed consumers for subscriptions to "premium" texts such as $10-per-month horoscopes that were never authorized by the account holder. The FTC alleges that T-Mobile collected as much as 40 percent of the charges, even after being made aware that the subscriptions were scams.

FTC Chair Edith Ramirez said in a statement that the agency's goal is to ensure T-Mobile repays its customers. She said there were, quote, "clear warning signs the charges it was imposing were fraudulent."

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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