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Florida Files "Cramming" Suit

Unauthorized Charges on Phone Bills

October 2, 2006

Cramming • Wireless Carriers Agree To $1.5 Million Cramming Settlement • Illinois Files "Cramming" Suit Against California Firm • Florida Seeks to Outlaw Cramming • AT&T Settles Cramming Suit • Feds Settle with BSG/ZPDI/Billing Concepts • Verizon Signs Florida Anti-Cramming Agreement • Embarq Agreement Protects Florida Consumers from Cramming • Florida Company Agrees to Repay 'Cramming' Charges • Florida Files "Cramming" Suit • Congress, Feds Sleep While Cramming Charges Afflict Thousands • Florida Seeks Nationwide Telephone Billing Probe • Florida Opens "Cramming" Probe • Cramming Hits Consumers When They Least Expect It • Spitzer Wins Cramming Concessions from Verizon • Mobsters Charged in Cramming Scheme • FTC Opens Hotline for Epixtar Victims --- • ILD Telecommunications • Billing Concepts/ZPDI

Florida Attorney General Charlie Crist has filed suit against an Internet service company for improperly tacking unauthorized charges onto consumers' phone bills.

In addition, Crist has joined Florida's Public Counsel Harold McLean in filing a petition with the Public Service Commission demanding that Verizon, BellSouth and Embarq be held responsible for charges placed on phone bills and calling for full reimbursement for affected consumers.

Crist's Economic Crimes Division launched an investigation this May after charges for Plantation-based Email Discount Network, LLC, an online shopping service, appeared on phone bills from several different telephone carriers.

The $12.95 and $14.95 charges are examples of "cramming," a billing practice that charges for extra services without the customer's knowledge.

According to records reviewed by Crist's office, at least 70 customers have been billed for the charges every month for a year. Florida consumers may have lost a combined total of nearly $200,000 to the company. Investigators estimate that more than 258,000 customers were charged nationwide, including more than 20,000 Floridians.

Other Internet service companies with the same owners as Email Discount Network are still under investigation and could have more than a million affected customers, according to officials.

"Phone companies shouldn't bill consumers for services they never agreed to pay for," said Crist. "We will continue to protect our consumers from any company that might try to take advantage of them and hold those companies accountable."

Investigators spoke with victims of the scam, none of whom were aware of signing up for the service. Email Discount Network charged many consumers after they signed up to receive coupons or took online surveys. The company failed to clearly inform the consumers that this would result in charges on their phone bills.

Some of the victims did not even have computers, or were out of town when they supposedly signed up. In light of this scam, Crist encouraged consumers to carefully read their phone bills to catch repeated charges before they add up to large sums of lost money.

In their petition filed with the Public Service, Crist and McLean assert that under Florida law, phone companies should not have included the charges from Email Discount Network. The petition also calls for complete reimbursement for any affected Floridians.

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