Verizon Communications Inc.

Verizon Wireless entered a $90 million global settlement in May 2015 with federal and state regulators over allegations that customers were charged for third-party products and services they had not authorized, a practice commonly known as mobile cramming. The disputed charges included premium text-message subscriptions for products such as ringtones, wallpapers, horoscopes, flirting tips and celebrity gossip. Federal regulators treated the placement of unauthorized third-party charges on consumers' telephone bills as an unjust and unreasonable billing practice under federal communications law. Under the global settlement, Verizon was required to provide consumer redress and make payments to federal and state authorities. The settlement also required reforms designed to prevent unauthorized third-party billing. These included requirements concerning express informed consent before third-party charges could be placed on bills, clearer identification of third-party charges, consumer blocking options, compliance monitoring and refund procedures. The Federal Communications Commission listed the Verizon Wireless cramming resolution as a $90 million consent decree. Primary sources: Federal Communications Commission — Telecommunications Consumers Division Enforcement Actions: https://transition.fcc.gov/eb/tcd/eabydate.html FCC announcement concerning Sprint and Verizon cramming settlements: https://docs.fcc.gov/public/attachments/DOC-333427A1.pdf Verizon Wireless Consent Decree: https://apps.fcc.gov/edocs_public/attachmatch/DA-15-537A1.pdf