Major wireless carriers agree to stop 'cramming' in MO

Under an agreement with 45 states, major wireless carriers AT&T Inc. (NYSE: T), Sprint Corp. (NYSE: S) and T-Mobile US Inc. (NYSE: TMUS) have agreed to stop an often-deceptive practice known as "cramming" on Missouri customers' bills.

The process includes allowing third-party charges to be included on mobile phone bills, whereby consumers might unknowingly purchase some type of service and be charged for it on their cellphone bills, according to a news release from Missouri Attorney General Chris Koster's office.

Cramming on mobile phones often entails receiving an unsolicited text message directing consumers to reply for some purpose, such as entering a contest. Upon replying, the consumer might then unknowingly enroll their cellphone numbers into a service, such as music streaming, ringtone purchases, or horoscope or celebrity gossip. Cellphone and landline cramming is estimated to cost Americans $2 billion per year, the release said.

“Carriers have allowed third parties to use mobile billing to charge for their services – services most consumers did not want and may not have even noticed,” Koster said in the release. “It is time for this practice to stop. We will continue to work with other carriers to encourage them to take the same step that AT&T, Sprint and T-Mobile have agreed to take.”

Legitimate third-party messages, such as those used to donate to charities, should continue to be allowed, Koster said.[[In-content Ad]]