T-Mobile has long positioned itself as a disruptor in the wireless industry, marketing itself as the Un-carrier that challenges conventional carrier practices. Yet the Federal Trade Commission has now filed a formal complaint against the company, alleging it deliberately charged customers for fraudulent third-party text messages.

The practice in question is called "cramming"—the unauthorized placement of third-party charges on customer bills. T-Mobile customers were billed for what the company labeled "Premium Services," typically adding $9.99 to monthly statements without explicit customer consent.

According to the FTC, T-Mobile demonstrated clear awareness of the scheme's illicit nature. In a single month alone, the agency notes, 40 percent of these charges were refunded to customers. Internal company documents show T-Mobile had identified customer complaints about the mysterious charges as far back as 2012.

The telecommunications company generated hundreds of millions of dollars through these charges by retaining a portion of the revenue. FTC Chairwoman Edith Ramirez commented on the matter: "It's wrong for a company like T-Mobile to profit from scams against its customers when there were clear warning signs the charges it was imposing were fraudulent."

The complaint may not have come as a complete surprise to T-Mobile's leadership. On June 10, the company had already announced it would cease permitting third-parties to charge customers for "Premium SMS Services." Chief Marketing Officer Mike Sievert stated at the time: "If you've been charged for a third-party service you didn't sign up for, it should be easy to get a refund."

T-Mobile CEO John Legere addressed the FTC's legal action through a blog post, dismissing the complaint as without merit. He reiterated that the company had already terminated billing for third-party services the previous year and had launched a customer remediation initiative. Legere wrote:

As the Un-carrier, we believe that customers should only pay for what they want and what they sign up for. We exited this business late last year, and announced an aggressive program to take care of customers and we are disappointed that the FTC has instead chosen to file this sensationalized legal action. We are the first to take action for the consumer and I am calling for the entire industry to do the same.

John Legere, T-Mobile CEO

The extent to which T-Mobile's customer care program will provide full reimbursement remains to be seen.

Source: The Next Web