FCC proposes rules to combat ‘cramming’

{mosads}These measures are aimed at helping consumers notice unauthorized charges, which are already illegal.  According to the FCC, crammers often avoid detection by charging a small amount, sometimes as little as $1.99, to many consumers.

The FCC estimates as many as 20 million American households are victims of cramming every year.  

“We’ve seen people getting charged for yoga classes, cosmetics, diet products and even psychic hotline memberships,” FCC Chairman Julius Genachowski said at a news conference last month. “But they’re buried in bills that can run 20 pages or more and are labeled with hard-to-decipher descriptions.”

Last month, the FCC proposed nearly $12 million in fines on four companies accused of placing unauthorized charges on consumers’ phone bills.  

Although third parties are usually responsible for cramming, sometimes the telephone companies themselves place the unauthorized charges. The FCC recently reached a settlement with Verizon Wireless to refund overcharges to its customers and pay an additional $25 million to the U.S. Treasury.  

The public will have 60 days to comment on the proposed rules. Then there will be an additional 30 days for responses to the comments before the FCC decides whether to enact the measures. 

The Senate Commerce Committee, led by Chairman Jay Rockefeller (D-W. Va.), has been conducting its own investigation into cramming. The Committee will hold a hearing on the issue on Wednesday.