T-Mobile US, Inc. Rotten Score Breakdown
Corporate Misconduct
0.0ptsNo documented evidence
Avg Rating: —Ratings: 0Severity Score: 0.00Evidence Count: 0Contribution: 0.0 pts
Human Rights & Exploitation
0.0ptsNo documented evidence
Avg Rating: —Ratings: 0Severity Score: 0.00Evidence Count: 0Contribution: 0.0 pts
Fraud & Corruption
0.0ptsNo documented evidence
Avg Rating: —Ratings: 0Severity Score: 0.00Evidence Count: 0Contribution: 0.0 pts
Deceptive Practices
30.0ptsToxic workplace vibes
Avg Rating: 5.00Ratings: 1Severity Score: 6.00Evidence Count: 1Contribution: 30.0 pts
Misconduct: low 0 · medium 0 · high 1
Remediation: low 0 · medium 0 · high 0ⓘ cap: 25%
T-Mobile agreed to at least $90 million in refunds and penalties over unauthorized third-party charges
T-Mobile USA agreed in December 2014 to provide at least $90 million in refunds and other payments to resolve a Federal Trade Commission lawsuit concerning unauthorized third-party charges placed on customers' mobile phone bills, a practice known as mobile cramming.
The FTC alleged that T-Mobile billed consumers for recurring third-party subscriptions for services such as horoscopes, celebrity gossip and flirting tips that often cost $9.99 per month.
According to the FTC, many consumers had never authorized the charges.
The FTC alleged that T-Mobile retained approximately 35 to 40 percent of the amounts charged to consumers for the third-party subscriptions.
The complaint further alleged that unusually high refund rates for some subscription services should have alerted T-Mobile that many customers had not authorized the charges.
The FTC also alleged that T-Mobile made the charges difficult for consumers to identify by burying them in lengthy bills or describing them using unclear billing labels.
Under the settlement, T-Mobile agreed to provide full refunds to affected consumers, with total redress and other payments required to reach at least $90 million.
The settlement also included $18 million in fines and penalties paid to state attorneys general and $4.5 million paid to the Federal Communications Commission.
T-Mobile was also required to obtain express informed consent before placing third-party charges on customers' bills and to provide consumers with clearer notice and blocking options.
Primary sources:
Federal Trade Commission — T-Mobile to Pay At Least $90 Million, Including Full Consumer Refunds:
https://www.ftc.gov/news-events/news/press-releases/2014/12/t-mobile-pay-least-90-million-including-full-consumer-refunds-settle-ftc-mobile-cramming-case
FTC case record:
https://www.ftc.gov/legal-library/browse/cases-proceedings/132-3231-t-mobile-usa-inc
Environmental Harm
0.0ptsNo documented evidence
Avg Rating: —Ratings: 0Severity Score: 0.00Evidence Count: 0Contribution: 0.0 pts
Sustainability Deception
0.0ptsNo documented evidence
Avg Rating: —Ratings: 0Severity Score: 0.00Evidence Count: 0Contribution: 0.0 pts
Workplace Misconduct
0.0ptsNo documented evidence
Avg Rating: —Ratings: 0Severity Score: 0.00Evidence Count: 0Contribution: 0.0 pts
Financial Misconduct
0.0ptsNo documented evidence
Avg Rating: —Ratings: 0Severity Score: 0.00Evidence Count: 0Contribution: 0.0 pts