FTC overlooks true villains in AT&T cramming settlement
Earlier this month, the Federal Trade Commission (FTC) announced a $105 million multi-agency settlement with AT&T Mobility LLC. The FTC, along with the Federal Communications Commission (FCC) and various state law enforcement officials, had accused the wireless provider of unlawfully billing customers for third-party charges – a practice known as “cramming.” The settlement is a significant milestone, not only in the government’s ongoing efforts to control cramming but also in the use of intermediary liability to regulate broad telecommunications ecosystems.
The settlement involved premium text-messaging services, wherein customers pay a monthly fee for mobile content such as ringtones, horoscopes,...