AT&T refunds unauthorized charges in Florida

by Joe P on March 3, 2008

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Finally, someone is doing something about this. There are thousands upon thousands of ringtones sites on the Internet. Many of them claim to be free. So, naturally, people gravitate towards them, as they want their favorite songs playing when the phone rings. Unfortunately, not many people ask the question: How is this free? If ringtones cost money most places, how do some services end up giving them away? The answer: They sign you up for monthly subscription services which are billed through your cell phone carrier. This way, you’re less apt to notice the charge on your bill, and will continue paying it. The Florida Attorney General has had enough, though. His office and AT&T have agreed to refund all Florida AT&T Mobility customers for any unauthorized charges they may have incurred from this.

“Consumers should never be billed for services they thought were free of charge,” said Attorney General Bill McCollum. “Today’s agreement establishes a precedent for wireless companies accepting responsibility for the charges placed on consumers’ bills and ensuring that content is billed the way it should be – in a fair and fully disclosed manner. AT&T should be commended for being the first wireless company in the industry to offer this reform.”

The most important result of this proceeding is that there will be a greater regulation on how these third parties advertise their services. For instance, instead of just “Free ringtone,” companies would be required to note that the free ringtone is a gift for signing up for a $10 monthly subscription. Clearly, that will cut into their bottom line.

Parents will also be afforded the opportunity to block all third party downloads. The carriers clearly love this, since it means people will be restricted to their brand of content. But while the carriers’ greed may be enhanced by this, let us not forget that it might be the best way to stave off unwanted charges. Surely, there will be companies that do not comply to this AG mandate to disclose all charges. So by blocking all third party transactions, people can ensure that their bill is not wrought with unwanted charges.

The AG’s office has also said that it will look into the other major carriers in Florida — Verizon, Sprint, Alltel, and T-Mobile — to see if the same thing is happening to their customers.

[TCPalm]

Filed under : Consumer Issues