FTC Charges Cellphone Bill “Cramming” Scam

The Federal Trade Commission (“FTC”) has filed its first mobile phone ‘cramming’ case against a Georgia based company that allegedly signed up and billed consumers for text messages containing horoscopes, love tips and flirting advice that they had never requested. The FTC charged Wise Media, LLC and its officers, Brian M. Buckley and Winston J. Deloney, in a scam known as “cramming,” which is a form of fraud in which small charges are added to a bill by a third party without the subscriber's consent or disclosure. The Commission alleges that the defendants’ practices were deceptive and unfair in violation of the FTC Act. According to the FTC, Wise Media, LLC sent texts suggesting that consumers were subscribed to the service; messages many consumers dismissed as spam and ignored. The company then forced customers to opt out of its subscription services, though it hid its contact information; and in many cases charged customers even if they tried to unsubscribe, according to the complaint. Even if consumers sent messages stating they did not want the service, they were billed on an ongoing basis.