Verizon will have to pay $90 million and Sprint $68 million in refunds to users who were charged phony fees on their phone bills.
Charges such as these have been added to users' fees for a number of years now, using a process known in the industry as "cramming." The charges against Verizon and Sprint came from the Federal Communications Commission, which ordered the two companies to make the refunds.
"Under the terms of the agreements the FCC announced today, Verizon's $90 million settlement will include a minimum of $70 million to fund a consumer redress program, $16 million for state governments participating in the settlement, and $4 million as a fine paid to the U.S. Treasury," said the FCC in a statement breaking down the payments. "Sprint's $68 million settlement will include a minimum of $50 million to fund a consumer redress program, $12 million for state governments participating in the settlement, and $6 million as a fine paid to the U.S. Treasury."
Verizon and Sprint are not the only companies being charged for cramming, with both AT&T and T-Mobile having already been charged over the practice. All four of the companies claim that they have not taken part in cramming for the past few months.
Regulators explained that customers were usually charged for subscriptions to third-party services for things like celebrity gossip services. Companies often charge customers around $9.99 per month, and took a cut of up to 40 percent of the fee.
"Verizon thoroughly vetted the companies that provided these services and terminated providers who did not comply with our industry-leading practices," said Verizon spokesperson Debra Lewis.
To see if one is eligible for a refund, they will need to check over their past bills. Verizon customers can apply if they think they were a victim between July 1, 2010 and Jan. 31, 2014, at which point Verizon's program ended. The same dates apply to Sprint customers. Both Verizon and Sprint's websites will offer tools for users to check if they were a victim of the program starting on July 1.
To apply for the refund, Verizon customers can head to the Wireless Premium SMS Refund Program website and submit a claim. Sprint customers will need to wait until July 1, and at that point can head to the Sprint Government Resolution website.
Verizon customers should expect their refund within 90 days; however, Sprint customers may have to wait up to 9 months to receive their refund.
