Seattle Post-Intelligencer [1], by Phuong Cat Le, reporter - June 9, 2008 - EVER NOTICE a mysterious charge on your cell phone bill for ringtones, premium text messaging or other mobile content you didn't authorize?
Last week, AT&T Mobility announced it would settle a group of class-action lawsuits and refund consumers who were billed for unauthorized third-party mobile content, such as text messaging, daily horoscopes and wallpapers.
Like many cellular companies, AT&T doesn't provide the content but bills its customers on behalf of third-party vendors.
Consumers nationwide have been fighting back against such "cramming" and have filed multiple lawsuits against the nation's major cell phone carriers and third-party mobile vendors over charges placed on their phone bills that they didn't sign up for.
Q: What should I do if I get charged for content I didn't authorize?
A: Review your phone bill carefully each month. Dispute any charge that you did not authorize, even small ones for $3 or $10. Contact the third-party vendor or your cell phone company and ask them to remove the charges.
Sue Macomber, with the Utilities Consumers Action Network, a nonprofit group in San Diego, advises consumers write a letter to the cell phone company so the complaint is officially logged. Send your letter by certified mail and request a return receipt, Macomber said, and include in your letter a deadline for when you expect a written reply or for the charges to be dropped.
Background: "It's so easy to sign up for these services," said Art Neill, an attorney with UCAN, which has sued several cell phone companies over incorrect billing and other fees. Often the services are targeted to kids, many of whom don't realize they've subscribed to a monthly ringtone service that costs $9.99 or more a month. And it can be difficult to cancel or remove the charges.
"People have to search and search to find out what the message code is to turn off a service. You should be able to call (to cancel), but I don't think it's as easy as that," Neill said. "What we find is it often depends on who you get on the phone, how effective you are and how persistent you are, how persuasive you are."
Under last week's settlement, which received preliminary court approval, AT&T has agreed to refund current or former customers for unauthorized charges from Jan. 1, 2004, to May 30, 2008, provided they haven't already received a refund. Customers who were billed wrongly for subscription services can claim up to three of their monthly bills during that same period. The company did not admit wrongdoing in the case.
To claim a refund, go online to thirdpartycontentrefund.com.
"This is a great result for consumers," said Jay Edelson, lead attorney for plaintiffs in the case. His Chicago-based firm also has sued Verizon Wireless, Sprint Nextel Corp. and T-Mobile USA over similar third-party charges.
Edelson has heard from thousands who were charged for third-party services they didn't sign up for and couldn't easily cancel or get a refund on.
Some content providers or their affiliates may sign up people for services without their consent, Edelson said. Sometimes, consumers unknowingly subscribe to such services when they fill out a form or enter a contest that asks for a cell phone number; they don't realize they have subscribed for the monthly ringtone, horoscope or joke service until the fee appears on their cell phone bill.
"It's really like the Wild West out there," he said. "There aren't safeguards in place."
AT&T now requires customers who sign up for third-party services to confirm their enrollment by replying to a text message. It also requires the content providers to send monthly reminders with instructions on how to unsubscribe from such services.
AT&T also reached a settlement agreement with the Florida attorney general earlier this year in which it agreed to require third-party vendors to "clearly and conspicuously disclose the true cost of ringtones and other content in all online advertising to potential customers."
CONSUMER TIPS
# Carefully review your telephone bill every month. Are there charges you didn't place or services you didn't authorize?
# Carefully read all forms and promotional materials -- including the fine print -- before signing up for telephone or other services to be billed on your phone bill.
# Call your cell phone company and ask whether it will block text messages or other content to your phone.
# If you experience cramming in Washington state, file a complaint with the Washington Utilities and Transportation Commission at 800-562-6150 or online at goto.seattlepi.com/r1472. You also can file a complaint with the Federal Communications Commission at 888-225-5322 or online at goto.seattlepi.com/r1473.
This report includes information from The Associated Press.