FCC Alerts Consumers to Mystery Phone Fees

Noticed a yoga class charged on your phone bill recently? If not, you could be one of 20 million Americans who are unaware that phone companies are swindling them out of hard-earned money every day.

The Federal Communications Commission is sick of it.

The practice, called "cramming," happens when companies illegally place unauthorized or deceptive fees onto consumers' monthly bills. These illegal charges can range from long-distance services, to voicemall, to even diet plans and yoga classes, the FCC said in a press release.

"We want to send a clear message: if you charge consumers unauthorized fees, you will be discovered and you will be punished," said FCC Chairman Julius Genachowski, as he announced plans to increase transparency and to enforce $11.7 million in penalties on several companies allegedly caught in the act.

Notices of liability were recently sent to four landline companies regarding cramming: Main Street Telephone ($4,200,000); VoiceNet Telephone, LLC ($3,000,000); Cheap2Digital Telephone, LLC ($3,000,000); and Norristown Telephone, LLC ($1,500,000). 

Still, the FCC said any person could be a potential victim, noting that just 5 percent of those affected by a particular "cramming" company and its practices knew about it. This translates into approximately 15 million - 20 million consumers, the FCC said.

“Cramming is not only illegal, it erodes consumer trust in communications services," Genachowski said.  "The FCC will not tolerate cramming, and we are turning up the heat on companies that rip off consumers with unauthorized fees."

To file a complaint about problems with your phone service and bill, including cramming, contact the FCC at fcc.gov/complaints or 1-888- CALL-FCC.