The FTC’s New Focus – Cramming Cases

The grand cram scam is alive and well. In fact, in the world of mobile technology, cramming is taking on new life and is also getting the attention of the Federal Trade Commission (“FTC”), Federal Communications Commission (“FCC”), the Better Business Bureau (“BBB”), States Attorney Generals, and cash strapped, angry consumers who are looking more closely at their cell phone bills. The old scam known as “cramming” has shifted from landlines to cellphones and has gained the attention of the FTC, which has called on mobile carriers to provide "basic protections" for consumers against fraudulent billing, or cramming, through mobile payment systems. As part of the agency’s new focus on consumer protection issues arising from mobile technology, on May 8, 2013, the FTC held a day-long conference on the issue with consumer advocates, wireless carrier representatives, and state and federal officials. The roundtable meeting came just weeks after the Commission filed its first case against phone crammers who added bogus charges to users' mobile phone bills. The complaint was filed in the District Court for the Northern District of Georgia against Wise Media, Brian M. Buckley, and Winston J. Deloney, whom allegedly took in millions with the scam.