AT&T Mobility to pay $2.6M settlement for deceptive billing: Carrier reaches agreement with Florida AG

Florida Attorney General Bill McCollum said a $2.6 million settlement was reached with AT&T Mobility in connection with consumers billed for wireless content advertised as free.
The state’s CyberFraud Task Force also announced it will investigate other major cellular carriers to ensure subscribers are safeguarded from similar marketing schemes.
“Consumers should never be billed for services they thought were free of charge,” said McCollum. “Today’s agreement establishes a precedent for wireless companies accepting responsibility for the way cellphone content is advertised on the Internet and the manner in which charges are passed along to consumers. AT&T should be commended for being the first wireless company in the industry to offer this reform.”
According to a news release on the settlement, AT&T Mobility will be the first cellular carrier in the country to police representations made in Internet advertising for cellphone content — including third-party ringtones, horoscopes and wallpapers — to ensure fair and full disclosure. In addition, AT&T Mobility will pay $2.5 million to the attorney general’s office to underwrite efforts of the task force as it pushes forward for similar industry reform and will contribute an additional $500,000 toward consumer education on safe Internet use. The nation’s No. 1 mobile-phone operator also agreed to reimburse Florida consumers who unwittingly signed up for wireless content marketed as free.
“This settlement comes at a time when the digital consumer is faced with new deceptive Internet scams on a daily basis,” said Brad Ashwell, legislative advocate for the Florida Public Interest Research Group. “It’s encouraging to see a corporation of AT&T’s magnitude taking responsibility for unfair charges and it is encouraging that the funds from this settlement will ensure that the attorney general’s CyberFraud Task force continues protecting consumers in the virtual marketplace.”
In November, McCollum sued Buongiorno S.p.A, accusing the Italian mobile content giant of blatantly deceptive practices and cramming charges onto consumers’ cellphone bills. Buongiorno said at the time it would vigorously defend its business practices.
McCollum’s settlement with AT&T Mobility comes as members of the U.S. Congress consider wireless consumer protection bills and a national policy framework for cellular operators.