T-Mobile Made Millions With Fake Customer Charges, Uh-Oh

Amid T-Mobile's efforts to separate itself from the crowd of mobile carriers by offering contract-free plans, the Federal Trade Commission is alleging that T-Mobile made "hundreds of millions of dollars" off customers in recent years — without customers knowing it. FTC released a statement on Tuesday announcing T-Mobile took part in a practice called "cramming," where third-party company charges for special services appear on customer bills without informing them.

Plus, T-Mobile did not clearly state the charges were from a third party on customer bills. Yeah. You don't want to be a T-Mobile customer right now.

According to the FTC complaint, which was filed in Seattle Tuesday in a federal court, T-Mobile customers were charged for premium text messaging services, such as a daily horoscope text that could run about $10 per month, even though customers didn't consent to such services. Apparently, numerous customers complained about the services, which are scams, and still walked away with nearly 40 percent of the profits, knowing the charges were fraudulent. Way to go, T-Mobile. Edith Ramirez, FTC Chair, released the following statement on Tuesday:

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T-Mobile released a statement on the company's media relations page late Tuesday, blasting the FTC complaint:

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The FTC did try to reach a settlement with T-Mobile, but wasn't able to at this time. Plus, a separate investigation has been launched by the Federal Communications Commission.