AT&T Forced To Pay Millions In Fines
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WASHINGTON (CBSDFW.COM) – The Federal Communications Commission's Enforcement Bureau announced a settlement Monday with AT&T to resolve its investigation into whether the company "crammed" unauthorized third-party charges on its customers' wireline telephone bills, according to an FCC news release.
AT&T allowed scammers to charge customers approximately $9 per month for a sham directory assistance service.
The U.S. Drug Enforcement Administration uncovered the scam while investigating the scammers for drug-related crimes and money laundering.
"A phone bill should not be a tool for drug traffickers, money launderers, and other unscrupulous third parties to fleece American consumers," said Enforcement Bureau Chief Travis LeBlanc. "Today's settlement ensures that AT&T customers who were charged for this sham service will get their money back and that all AT&T consumers will enjoy greater protections against unauthorized charges on their phone bills in the future."
AT&T received a fee from the companies for each charge AT&T placed on its customers' bills.
Although Discount Directory, Inc. and Enhanced Telecommunications Services submitted charges for thousands of AT&T customers, they never provided any directory assistance service, according to an FCC news release.
Neither DDI, ETS, nor AT&T could show that any of AT&T's customers agreed to be billed for the sham directory assistance service.
Under the terms of the settlement, AT&T will issue full refunds to all current and former consumers charged for the sham directory assistance service since January 2012.
These refunds are expected to total $6,800,000. AT&T will also pay a $950,000 fine to the U.S. Treasury.
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