AT&T Settles Cramming Suit

Unauthorized charges plagued wireless subscribers

June 3, 2008

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AT&T has agreed to settle a class action suit stemming from unauthorized charges, placed by third-party providers, on the bills of its wireless customers – a practice common referred to as "cramming."

AT&T Wireless customers nationwide were affected. The settlement, which was preliminarily approved by a Georgia court, entitles AT&T Wireless customers to receive refunds of unauthorized charges.

Consumers complained that they were being charged for such things as ringtones, games, graphics and news or other alerts that generally are purchased over the internet and are charged directly to customers' cell phone bills.

Although these products were not available in the United States as recently as five years ago, they have evolved to form a large and increasingly lucrative industry. The lawsuits alleged that there were not adequate safeguards in place to ensure that customers are only billed for services they agreed to purchase.

The company noted that this is the first nationwide settlement of its kind and promises to serve as a benchmark for the mobile content industry more generally. It said its competitors, including Verizon, Sprint and T-Mobile, face similar lawsuits.

Attorneys Jay Edelson, Myles McGuire and Scott A. Kamber of KamberEdelson, LLC, were appointed by the Court to serve as the co-lead attorneys for the class.

"This is both a great result for the class and should put a lot of pressure on other carriers to demonstrate that they, too, are serious about their customers' welfare," Edelson said.

A special Web site, www.thirdpartycontentrefund.com, has been established for consumers who want to apply for refunds.

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