T-Mobile CEO John Legere says big lobbying is behind a federal lawsuit accusing his company of scamming customers.
The Federal Trade Commission sued T-Mobile on Tuesday for making hundreds of millions of dollars from unwanted charges on customers’ monthly phone bills—a practice known as mobile cramming.
In a series of tweets Tuesday, Legere suggested that the big carriers, such as AT&T and Verizon, had a hand in the FTC charges.
“So this is how the big carrier lobbyists in Washington work! Hey FTC did you lose Randall’s address?” Legere tweeted, referring to AT&T CEO Randall Stephenson.
“Looks like lobbying work of big greedy carriers!” he added.
The T-Mobile CEO, who is known for his colorful language, defended T-Mobile in a blog post Tuesday, saying the company stopped these unwanted charges last year and is actively working to refund customers.
“T-Mobile is fighting harder than any of the carriers to change the way the wireless industry operates and we are disappointed that the FTC has chosen to file this action against the most pro-consumer company in the industry rather than the real bad actors,” Legere wrote.
According to the FTC, T-Mobile knew about the unwanted charges—for services like flirting tips, horoscope information, and celebrity gossip—but continued to place them on consumers’ bills anyway. T-Mobile took a cut of 35-40 percent from the charges, which were often difficult to notice on bills, the FTC said.
“It’s wrong for a company like T-Mobile to profit from scams against its customers when there were clear warning signs the charges it was imposing were fraudulent,” FTC Chairwoman Edith Ramirez said in a statement.
“The FTC’s goal is to ensure that T-Mobile repays all its customers for these crammed charges.”
CORRECTION: In an earlier version of this article, the name of AT&T CEO Randall Stephenson was misspelled.
What We're Following See More »
In a unanimous decision, "the Supreme Court on Tuesday said it violates insider-trading laws for a corporate officer to make a “gift” of insider information to a relative, a decision that makes it easier for those who police Wall Street to bring prosecutions."
House Speaker Paul Ryan has decreed that House members "won’t receive their committee assignments until January — after they cast a public vote on the House floor for speaker. "The move has sparked behind-the-scenes grumbling from a handful of Ryan critics, who say the delay allows him and the Speaker-aligned Steering Committee to dole out committee assignments based on political loyalty rather than merit or expertise." The roll call to elect the speaker is set for Jan. 3, the first vote of the new Congress.
House Majority Leader Kevin McCarthy told reporters on Monday that the government funding bill will be released on Tuesday. The bill is the last piece of legislation Congress needs to pass before leaving for the year and is expected to fund the government through the spring. The exact time date the bill would fund the government through is unclear, though it is expected to be in April or May.
As has been rumored for a week, Donald Trump will nominate Ben Carson, his former rival, to lead the Department of Housing and Urban Development. In a statement, Trump said, "We have talked at length about my urban renewal agenda and our message of economic revival, very much including our inner cities. Ben shares my optimism about the future of our country and is part of ensuring that this is a Presidency representing all Americans. He is a tough competitor and never gives up."