Feeds

T-Mobile US boss: Hey, FTC! We didn't make THAT much from 'bogus premium texts'

Legere brands watchdog's claims 'incredibly overstated'

Website security in corporate America

The head of T-Mobile US is refuting claims from the Federal Trade Commission (FTC) that his company made huge revenues from allowing customers to be flooded with expensive text messages.

CEO John Legere said his cell network never bagged the "hundreds of millions of dollars" that the commission claims it did when people were signed up and charged for premium-rate services without their knowledge or permission.

"Despite the exaggeration of the FTC, this was neither a big nor important business for us, and their financial claims are incredibly overstated," Legere said in a rebuttal to the FTC's filing of a complaint.

"Additionally, those third-party content business operators are pretty much out of business."

The US watchdog earlier this week accused T-Mobile of allowing users to be signed up and continuously charged monthly rates for the premium SMS services, from which T-Mobile received a 30 to 40 percent cut.

The FTC said it will be seeking to recoup the money and return the funds to customers; lawyers for the FTC have said that the payout would likely be millions of dollars. And T-Mobile US could face additional fines from the Federal Communications Commission pending that watchdog's investigation into the matter.

Legere noted that his company discontinued all premium SMS services in 2013 and now offers users a refund program where charges from third-party companies can be disputed.

Never one to mince words, Legere claims that the FTC's action was the work of lobbyists representing competitors irked by the company's aggressive 'Uncarrier' campaign.

"You all know I can rant about injustice for a long time, but this weeks’ commentary has been sensational and created confusion for our customers and for my employees," Legere said.

"I had to make sure the truth was heard loud and clear." ®

Internet Security Threat Report 2014

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Google+ GOING, GOING ... ? Newbie Gmailers no longer forced into mandatory ID slurp
Mountain View distances itself from lame 'network thingy'
ISPs' post-net-neutrality world is built on 'bribes' says Tim Berners-Lee
Father of the worldwide web is extremely peeved over pay-per-packet-type plans
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
Drag queens: Oh, don't be so bitchy, Facebook! Let us use our stage names
Handbags at dawn over free content ad network's ID policy
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.