Missouri Attorney General Chris Koster this week reached settlement agreements with three telephone companies, following allegations the businesses engaged a in a practice called cramming, or causing unauthorized charges to be billed to customers.
As part of the settlements, the companies are required to pay refunds to customers and are permanently banned from placing future charges on consumers' phone bills. The lawsuits against the companies - one of new Hampshire and two of Florida - were filed last year, according to a news release.
“Cramming has affected thousands of Missouri consumers,” Koster said in the release. “Our office will continue to pursue companies that break Missouri’s laws and take advantage of consumers through deceptive advertising or other means.”
The settlements require:
- Concord, N.H.-based Coast to Coast Voice LLC to pay $35,303 in refunds to Missouri customers, $18,265 in restitution to the state and a $15,000 penalty to the Missouri Merchandising Practices Revolving Fund;
- Clearwater, Fla.-based Familycontact911.com LLC to pay $180,972 in refunds, $474 in restitution to the state and $15,000 the state revolving fund;
- Miami, Fla.-based Green Certification LLC to refund consumers to the tune of $60,727 and pay restitution to the state of $650, as well as $3,000 in costs and $5,000 in civil penalties to the state.
Koster this week also joined 39 other attorneys general to call on the U.S. Federal Trade Commission to seek solutions regarding increased cases of mobile phone cramming. The charges, according to a separate release, usually average about $9.95 and appear on bills without customer authorization.[[In-content Ad]]