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FCC plans to fine Sprint $105 million for overcharging customers

2014-12-16 16:24 by
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The FCC reportedly intends to fine Sprint $105 million for overcharging its customers. The proposal for the penalty came from the Federal Communications Commission Chairman Tom Wheeler. It hasn't been finalized or voted on yet.

The so-called data cramming has become very popular recently. It refers to the practice of billing customers for third-party services that they hadn't asked for and didn't want. Those third-party services are often "premium" text messages like horoscopes, love tips or celebrity news. Consumers are often unaware that they're being billed for the spam because the charges are included in their monthly bills under misleading titles.

This is not the first time a carrier is accused of overcharging its customers. In October AT&T agreed to pay $105 million because it billed its customers millions of dollars for unauthorized third-party services. The fourth-largest U.S. wireless carrier, T-Mobile US Inc. was sued by the Federal Trade Commission in July, over similar claims. The company is still in talks to settle the case.

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