As a general rule, telephone companies may include additional third-party charges on a customer’s phone bill so long as the customer authorized these charges. For example, if you text a company requesting to receive a daily horoscope on your phone, the charge associated with this service will likely appear on your cellular phone bill. These third-party charges may be included on your bill as a “service fee,” “service charge,” “monthly fee,” “other fees,” “voice mail,” “mail server,” “horoscope,” “psychic,” or “membership.”
The practice of including unauthorized, misleading, or deceptive charges and fees on a telephone bill is called “cramming.” Companies that cram fees onto telephone bills can make substantial profits from this practice because many consumers either do not closely review their bills or do not know who to contact to question the charges.
The Federal Communications Commission (FCC) requires telephone companies to make their phone bills consumer-friendly, in part, so that you can identify authorized services. Telephone companies must also list a toll-free number on the bill for you to call with questions so that you can discern whether you authorized the fees.
Some states have enacted anti-cramming laws. For example, California’s Anti-Cramming statute requires a clear description of the charge, the name of the company, the amount, how to dispute the charge, a toll free-number, and the number of a commission where the customer can register a complaint. Even if a state has not enacted a specific anti-cramming law, consumers may still be protected against cramming under state’s unfair and deceptive business practices acts.
For more information about cramming, click on this FCC fact sheet.
Cramming is not the only unfair practice you should watch out for when examining your phone bill. Traditional wireline phone customers are also susceptible to an unlawful process called “slamming.” Slamming occurs when your traditional phone company (local or long distance) is switched without your knowledge or permission. The FCC also enforces rules against slamming. For more information about slamming, visit the FCC website.