US sues T-Mobile, alleges cramming of bogus charges on bills

John MacDougall | AFP | Getty Images
Kevin Winter | Getty Images
John MacDougall | AFP | Getty Images

The U.S. Federal Trade Commission filed a complaint against T-Mobile on Tuesday, alleging that the wireless provider added millions of dollars of unauthorized charges onto customers' bills, a practice known as "cramming."

The charges were for subscriptions for services like horoscopes or celebrity gossip, which often cost $9.99 a month. T-Mobile received 35 to 40 percent of the amount charged, the FTC said in its complaint.

The FTC also alleged that T-Mobile USA was refunding to up 40 percent of some of the charges in a given month, which the agency said should have been a signal to the wireless company that the charges were fraudulent.

T-Mobile USA did not immediately respond to requests for comment.

The complaint was filed in the U.S. District Court for the Western District of Washington.

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— By Reuters