FTC pays out to AT&T customers after cramming settlement

If you were on AT&T in 2014 and unwittingly “signed up” for a text service to get your horoscope or love advice or ringtones, you’re about to get some compensation.

The Death Star settled with the Federal Trade Commission a couple of years ago over the practice of cramming third-party subscriptions onto more than 2.7 million customers’ monthly bills without them knowing about it. Tatto and Acquinity, two of the companies running the services involved, also settled in the dispute.

Soon, all those customers will either receive a bill credit (or a check in the case of 300,000 former customers) for all the charges racked — the average payout is $31.

The cramming process usually planted $9.99 a month bill items from Tatto and Acquinity for subscription text services. The FTC alleged that AT&T kept 35 percent of those fees. The Dallas-based cellular service provider settled for $80 million, which makes of most of the refund total.

Payments began December 8.

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About The Author
Jules Wang
Jules Wang is News Editor for Pocketnow and one of the hosts of the Pocketnow Weekly Podcast. He came onto the team in 2014 as an intern editing and producing videos and the podcast while he was studying journalism at Emerson College. He graduated the year after and entered into his current position at Pocketnow, full-time.