WASHINGTON – Federal regulators are accusing Sprint Corp. of illegally billing its wireless customers tens of millions of dollars in unwanted charges for text message alerts and other services.
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The Consumer Financial Protection Bureau said Wednesday it has sued the telecom company over billing for unauthorized charges, a practice known as "cramming." The agency said Sprint failed to oversee third-party companies, allowing illegal charges to be put on customers' bills.
The bureau said the charges ranged from one-time fees of 99 cents to $4.99, to monthly subscriptions costing $9.99 a month. It said Sprint received up to 40 percent of the revenue from the charges.
The Wall Street Journal reported that the Federal Communications Commission is expected to fine Sprint a record $105 million for the alleged violations.