AT&T to Pay $105 Million to Settle FCC, FTC Phone-Bill Cramming Charges

The Federal Communications Commission, the Federal Trade Commission and 51 attorneys general announced Oct. 8 a $105 million settlement with AT&T Inc. to resolve an investigation into unauthorized wireless phone bill charges.

The settlement is the largest enforcement action in the FCC’s history. Of the total settlement, $80 million will be paid to the FTC to reimburse AT&T customers for unauthorized charges by third-party services, a practice known as cramming. The remaining $25 million in penalties will be paid to the FCC and the states.

Cramming typically involves consumers being charged for third-party products—like ringtones, wallpapers, horoscopes or celebrity gossip—that ...