Since consumers started using Internet commerce they have been plagued by unauthorized charges from companies abusing negative option marketing.
Using third-party marketing relationships, these companies charged consumers for products and services without their knowledge, in a practice known as cramming. In recent years, consumers using mobile phones and devices have had similar experiences.
A group of mobile content providers, including Cylon, Cellfish Media, Predicto Mobile, Too Lazy, the application provider 3C Interactive, and the aggregator OpenMarket, have agreed to settle a number of class action lawsuits against them, involving claims that these companies charged wireless subscribers for "mobile content" without authorization.
In reaching a settlement, the defendants denied any wrongful conduct.
Mobile content refers to electronic products such as ringtones, games, graphics, news, and other alerts that are provided through mobile phones and are charged directly to consumers' mobile phone bills. Although a relatively new form of commerce, mobile content has evolved to form a large and increasingly important industry.
The settlement has been preliminarily approved by the Circuit Court of Cook County in Illinois, according to attorneys Jay Edelson, Myles McGuire, Rafey S. Balabanian, and Steven L. Lezell of Edelson McGuire, LLC, appointed by the Court to serve as the attorneys for the class.
Refunds
The settlement provides for refunds for unauthorized mobile content charges to settlement members, and attorney's fees of up to $3.2 million. Settlement members are eligible to receive a one-time cash award of $10.00, or a refund of up to three months of content subscription charges.
According to the lawyers, the settlement class include any person in the U.S. and its territories who, at any time prior to September 13, 2010, was billed and paid for unauthorized content from any of the settling defendants.
Individuals can find out if they are eligible by scanning past phone records for short codes that identify the various mobile content companies. Participants in the AT&T;, Mobile Messenger, Media Breakaway, mBlox, m-Qube or Jamster! settlements are not eligible.
In addition to the payout, the defendants are required to agree to adhere to certain guidelines for mobile content sales and marketingincluding properly disclosing billing termsas well as promptly refunding unauthorized content.
