Washington, DC, United States (4E) – The Federal Trade Commission (FTC) is asking for a court order to stop T-Mobile from charging customers for spam texts and fully refund hundreds of millions of dollars charged to customers for the unauthorized service.
“The FTC’s goal is to ensure that T-Mobile repays all its customers for these crammed charges,” FTC Chairwoman Edith Ramirez said Tuesday in a statement, according to The Hill.
Jessica Rich, director of the FTC’s Bureau of Consumer Protection, also said the legal action represents the agency’s ongoing crackdown against cramming.
Customers were allegedly charged $9.99 per month for the spam texts consisting of flirting tips, horoscope or celebrity gossip that they did not subscribe to, FTC claimed. T-Mobile, the fourth-largest telecommunications company in the U.S., allegedly received between 35 and 40 percent of the charge.
The FTC also accused T-Mobile of ignoring complaints against the spam and demands for refunds and end to the unwanted service. The agency added that T-Mobile hid the charges and made the charges difficult to remove.
T-Mobile CEO John Legere denied the allegations calling them “unfounded and without merit.” Legere said FTC should go after third party companies sending the text messages.
Legere also said the company already committed to stop billing for unwanted spam texts and refund customers.