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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Mobile Cramming Settlement

AT&T Mobility LLC paid federal and state authorities $105 million to settle charges of unlawfully billing cell phone customers for unauthorized third-party charges, a practice known as “mobile cramming”. AT&T agreed to pay $80 million to the Federal Trade Commission (FTC) for consumer refunds, $20 million in penalties and fees to 50 states and the District of Columbia, and a $5 million penalty to the Federal Communications Commission. The FTC alleged that AT&T billed customers hundreds of millions of dollars in charges originated by other companies, usually in amounts of $9.99 per month, for ringtone, wallpaper, and text message subscriptions. The FTC alleged that AT&T kept at least 35 percent of those charges. The FTC alleged that AT&T compounded the problem by making it difficult for customers to know that third-party charges were being placed on their bills: the fees were only identified as “AT&T Monthly Subscriptions,” leaving customers to believe the charges were part of services provided by AT&T. In some cases, customers complained that AT&T refused to issue refunds or would only issue partial refunds.

Misconduct Type
Consumer Affairs
Enforcement Agency
Multiple Agencies
Contracting Party
None
Court Type
Civil
Disposition
Settlement
Date of Settlement Announcement
10/8/2014
Contractors Involved Penalty
Total
AT&T Inc. $105,000,000
Further Information Released
FCC Consent Decree 10/8/2014
FCC Press Release 10/8/2014
FTC Complaint 10/8/2014
FTC Order 10/8/2014
FTC Press Release 10/8/2014

Federal Contractor Misconduct Database