AT&T Inc. Rotten Score Breakdown

AT&T Mobility entered a $105 million settlement with federal and state law-enforcement authorities in October 2014 over unauthorized third-party charges placed on consumers' mobile-phone bills, a practice commonly known as mobile cramming. The Federal Trade Commission alleged that AT&T billed customers for hundreds of millions of dollars in charges originating from third-party companies. The charges commonly involved subscriptions costing approximately $9.99 per month for products such as ringtones and text-message services containing horoscopes, love tips and other content. According to the FTC, many consumers had not authorized the charges. The FTC alleged that AT&T retained at least 35 percent of the third-party charges imposed on customers. The Commission also alleged that AT&T's billing structure made the charges difficult for consumers to identify. Some third-party fees appeared under descriptions such as "AT&T Monthly Subscriptions," potentially causing consumers to believe they were charges for services supplied directly by AT&T. The global settlement totaled $105 million. AT&T agreed to provide $80 million for consumer refunds. It also agreed to pay $20 million in penalties and fees to the 50 states and District of Columbia and a $5 million penalty to the Federal Communications Commission. The settlement imposed requirements intended to prevent unauthorized third-party billing in the future. Primary sources: Federal Trade Commission — AT&T to Pay $80 Million to FTC for Consumer Refunds in Mobile Cramming Case: https://www.ftc.gov/news-events/news/press-releases/2014/10/att-pay-80-million-ftc-consumer-refunds-mobile-cramming-case Federal Communications Commission — AT&T Mobility Unauthorized Third-Party Billing Consent Decree: https://docs.fcc.gov/public/attachments/DA-14-1457A1_Rcd.pdf