Texas Receives Cramming Settlement from AT&T

The State of Texas, all other 49 states and the District of Columbia, have announced the resolution of their multistate investigation into AT&T for cellphone cramming.

Cellphone cramming is, according to the Federal Communications Commission, the illegal act of placing unauthorized charges on your wireline, wireless, or bundled services telephone bill.

Cramming is often perpetrated when cell phone providers allow third-party businesses to add charges to a cell phone bill.

Under the settlement, AT&T agreed to pay out a total of $105 million. Of the $105 million, $5 million will go to the FCC and $20 million will be divided among the states.

According to the Texas Attorney General’s office, Texas will receive the largest share at approximately $1.17 million, one-third of which will be used to reimburse the State’s legal fees. The remaining amount will be disbursed as civil penalties throughout the Texas Judicial Access Fund.

The Internet Privacy team of the Texas Attorney General’s office served on the multistate coalition investigating claims into AT&T along with attorney generals from Delaware, Florida, Maryland, Oregon, Vermont and Washington

Learn more about cramming by visiting the FCC’s website, or report cramming by visiting the Federal Trade Commission’s website.