Did You Check Your AT&T Bill?

What specific mobile marketing law was violated in the AT&T case?

In 2014 The Federal Trade Commission (FTC) provided $88 Million dollars in refunds to 2.7 million AT&T customers for mobile cramming. Mobile cramming is when a third-party company adds unauthorized charges to a telephone bill. Tatto and Acquinity are two of the companies named in this mobile cramming scheme.

What are the negative consequences to the consumer?

The negative consequences to the AT&T customers where they were charged fees on their cell phone bill for services they did not ask for or receive. Most of the charges were $9.99 per month, for ringtones and text message subscriptions containing love tips, horoscopes, and “fun facts.” (FTC Providing Over $88 Million in Refunds to AT&T Customers Who Were Subjected to Mobile Cramming, 2021). These customers data was also shared with these third-party companies.

What are the possible penalties levied on a company for violating legal considerations?

There are many possible penalties placed on companies that violate the FTC laws. In this case AT&T settled with a $105 million settlement. $80 million paid to the FTC so that they could refund AT&T customers either through their bill or through a check. The average refund being $31. Another $20 million dollars will be dispersed to the 50 states and District of Columbia for penalties and fees and $5 million to the Federal Communications Commision.

What kind of actions must a marketer take with any mobile marketing campaign to remain ethical?

There are several actions that companies can take to make their mobile marketing ethical. First, they can be honest in their mobile marketing only offering accurate information, they should avoid deceptive marketing, only market products that are safe for the consumer, and make sure to protect their customers privacy and data. It is very important to only collect data that is necessary, and make sure to protect it and not pass it along to third-party companies.

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