AT&T Mobility has reached a settlement with Florida Attorney General Pam Bondi over allegations that the mobile-phone company charged customers $2.99 per month for roadside-assistance plans without their consent.
The nation's second-largest wireless provider must refund all roadside-assistance charges to Florida customers who did not consent to or use the service during the time they were charged. The Florida AG's Office estimates that more than 600,000 cell phone numbers were charged for roadside assistance during the time period that AT&T was investigated, and a considerable number of those customers will be eligible for refunds.
In addition to refunding customers, AT&T Mobility has agreed to do the following:
- donate $550,000 in prepaid phone cards to members of the U.S. military;
- donate $10,000 to the Florida Law Enforcement Officer of the Year program;
- pay $1.2 million to the AG's Office for future enforcement and attorneys' fees and costs.
AT&T also must provide future customers multiple text messages in connection with Roadside Assistance charges and how to cancel the service.
"Customers who were charged for Roadside Assistance between February 2004 until such time as AT&T Mobility implements the text message disclosures and did not consent to or use the service are eligible for the full refund and will receive a post card with information on how to file a claim," the AG's Office said Dec. 30.
If a customer doesn't have a text messaging plan or receive texts, the mobile giant must send a letter to the customer to confirm the roadside-assistance purchase and provide information on cancelling the service.
"The settlement also requires that AT&T Mobility clearly and conspicuously disclose the cost of Roadside Assistance and other AT&T Mobility services when offered in certain types of billing plans," the AG's Office said. "AT&T Mobility must obtain the customer’s authorization for the added charges."
Click here to read the settlement agreement.
