AT&T to pay CT $268K for “data cramming”

As part of a $105 million nationwide settlement to resolve “data cramming” allegations, AT&T Mobility will pay $268,252 to Connecticut, officials announced.

Attorneys general and consumer protection officials in all 50 states, along with the Federal Trade Commission and Federal Communications Commission, alleged that AT&T placed charges on consumers’ cell phone bills without their knowledge or consent.

The charges — for text message subscription services — typically amounted to $10 per month, and were added to bills for services provided by a third party.

AT&T, which said a year ago it would stop billing for unauthorized services, will pay $80 million to the FTC to fund a consumer restitution program. States will receive a total of $20 million. The company will also send notices to all customers who incurred the charges from 2009 onward, informing them about the refund process.

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Claims can be submitted through May 1, 2015 at www.gcc.gov/att.

In addition, the settlement requires AT&T to develop a system to attain customer consent before billing for any third-party service.