Monday, Sep 22nd

Last update05:44:54 AM GMT

You are here News Congress Bogus cellphone charges ‘a billion dollar industry,’ claims Senate report

Bogus cellphone charges ‘a billion dollar industry,’ claims Senate report

E-mail Print PDF

cell phone companiesA staff report from the Senate Commerce Committee is sounding the alarm about bogus charges on cellphone bills that it says are costing consumers “hundreds of millions of dollars.”

The report takes aim at wireless or mobile “cramming,” where consumers are hit with unauthorized charges for things like ringtones or daily horoscopes.

“For as long as they have been giving outside parties access to their customers’ bills, the major phone companies have assured Congress and the public that they are protecting their customers from billing fraud. ... But this report makes it clear that is not the case,” Senate Commerce Committee Chairman Jay Rockefeller (D-W.Va.) said in a statement announcing the report.

“Cramming on wireless phones has been widespread and has caused consumers substantial harm,” he continued.

The staff report describes mobile cramming as “a billion dollar industry” that “has likely cost consumers hundreds of millions” at the benefit of the wireless companies, which keep 30 to 40 percent of the charges.

Though wireless companies have “been on notice at least as early as 2008” about the charges, their “anti-cramming policies and sometimes lax oversight left wide gaps in consumer protection,” the report said.


Most Recent Related Stories...

GOP Rejects Obama’s ‘Creative’ Iran Nuclear Compromises

rouhaniThe Obama administration is frantically searching for “creative solutions” to get to a nuclear deal with...

How members of Congress use a little-known power to shape the military and help their constituents

Congress and the militaryEach year, members of Congress exercise a little-known power to help constituents obtain a nomination to...

Congress OKs bill to cut backlog of untested rape kits

Rape kit lawCongress sent President Barack Obama legislation Thursday renewing a soon to expire program that helps local...

Chemical reform bill faces uphill battle in Senate

UdallEfforts to come up with a new chemical regulation bill face an uphill battle in the...
America's # 1 Enemy
Tee Shirt
& Help Support!
TVNL Tee Shirt
Conserve our Planet
& Help Support!
Get your 9/11 & Media
Deception Dollars
& Help Support!
The Loaded Deck
The First & the Best!
The Media & Bush Admin Exposed!