FTC And Phone Billing Companies Settle Contempt Charges For Unauthorized Billing

The Federal Trade Commission and several telephone billing companies submitted a proposed stipulated order to the United States District Court for the Western District of Texas to resolve allegations that the billing companies violated a 1999 court order and permanent injunction concerning charges of phone bill cramming. The billing companies have agreed to pay $5.2 million to resolve the contempt charges stemming from their failure to comply with the 1999 order that had enjoined the billing companies from placing charges on customers' phone bills unless the charge was expressly authorized.

The settlement agreement and proposed order follows a November 2013 evidentiary hearing and a report and recommendation by a magistrate judge that recommended finding that the billing companies had violated the 1999 order by permitting unauthorized billing by voicemail service providers on a large scale.