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‘Cramming’ crackdown overdue
August 3, 2011 — Last month, the Federal Communications Commission proposed rules that would crack down on a particularly odious scam — “cramming.” The rules would be a strong step in the right direction. (Click here to read the editorial on the Chicago Sun-Times website.)
Chicago Sun-Times Editorial
Use the CUB Action Network to ask the FCC to issue tougher rules on cramming, and read CUB's cramming fact sheet.
Cramming takes advantage of those long, complicated bills that cell and phone companies send. Extra charges of a few dollars a month for services you never ordered are easy to miss in the long list of things like “connectivity charges” and legitimate third-party services.
As many as 20 million people are “crammed” each year by third-party companies, some of which do nothing but cram, but only about one in 20 customers realizes it, according to the FCC. The bogus charges can be for anything from psychic hotlines to diet programs, often misleadingly labeled as a “service fee.” The Senate Commerce Committee estimates Americans pay about $2 billion in mystery fees every year. Phone companies have little incentive to stop the charges because they get a cut of the revenues. “There’s no question that there is a big racket going on,” said David Kolata, executive director of the Citizens Utility Board. Its website helps Illinois cell phone users spot overcharges. Cramming already is illegal on landlines. The new rules would require cell phone companies to offer the option of blocking all third-party charges; require those charges to be in a separate, easy to spot, section of the bill, and require that bills carry information on how to complain to the FCC about cramming. In the meantime, check whether your phone company already allows blocking of third-party charges, read your bill carefully, and be wary of supplying personal data for coupons, sweepstakes or promotions. Tweet |