The FTC has accused T-Mobile of making millions off of bogus fees

T-Mobile is in hot water with the Federal Trade Commission. The FTC filed a complaint on Tuesday against T-Mobile, alleging that the carrier has made hundreds of millions of dollars on fees related to “premium” text messages that customers didn’t sign up for. The agency claims T-Mobile received between 35 and 40 percent of the total amount charged to consumers in conduct going back to 2009. The text messages, which are often sent as a joke of the day or flirting tips, can cost $9.99 a month. The act of putting a charge on a customer’s bill without their knowledge is a dubious industry practice known as “cramming.” The US carriers had agreed in November to end the practice, banning companies from sending these kinds of premium messages. The charges come less than a month after T-Mobile introduced a program in which the carrier said it would proactively reach out to customers billed for these third-party services, giving them a chance to request a refund. One of the aims of the FTC complaint is to ensure that every customer gets their refund, according to the Jessica Rich, director of consumer protection for the agency. The 35 to 40 percent cut of the fees amounts to hundreds of millions of dollars, and not the total amount taken from the customer, she said. The FTC engaged in settlement negotiations with T-Mobile, but couldn’t reach an agreement, Rich said. T-Mobile CEO John Legere responded on the company’s site, calling the FTC complaint “unfounded and without merit.”