Verizon Wireless and Sprint Corp. will pay a combined $158 million for unfairly “cramming” charges onto customers’ bills under a settlement announced by the Federal Communications Commission Tuesday.
Verizon will pay $90 million and Sprint will pay $60 million to settle claims that the companies charged wireless customers for unauthorized third-party services, including premium recurring text message packages for features such as horoscopes and sports scores.
About $120 million of the settlement will be returned to consumers who were victims of this practice, officials said. The FCC and attorneys general offices across the U.S., including Colorado, will receive the remaining $38 million.
“The settlement with Verizon and Sprint will return money to those who have been harmed and put wireless providers on notice that this office will vigorously defend the rights of Colorado consumers,” state Attorney General Cynthia Coffman, said in a statement.
The charge for these third-party services ranged from 99 cents to $14, officials for the FCC said in a . The typical monthly charge was $9.99, with the wireless carriers collecting more than 30 percent of the charges.
“Customers who called to complain were often denied refunds, and yet, when the FCC requested proof that customers had authorized charges, the carriers were unable to prove that these services were ever requested,” FCC officials said.
According to Coffman’s office, the settlement requires Verizon and Sprint to:
• Stay out of the commercial premium text messaging business.
• Obtain customers’ express consent before billing them for third-party charges.
• Provide an opportunity for a full refund or credit to consumers billed for unauthorized third-party charges.
• Provide information to consumers about blocking third-party charges.
• Display third-party charges in a dedicated section of consumers’ wireless bills.
Consumers who may have been affected can receive more information and submit refund claims to or .
The government restitution hotlines are 877-389-8787 (Sprint) and 888-726-7063 (Verizon).
Alicia Wallace: 303-954-1939, awallace@denverpost.com or twitter.com/aliciawallace
