Federal Trade Commission Goes after Wise Media for Alleged 'Crammed' Charges

The Federal Trade Commission has gone to court to sue Wise Media for allegedly wrongfully earning millions of dollars in crammed charges.

It becomes the first such court action by the FTC for mobile cramming. More cases may follow against other businesses.

The FTC wants a judge to freeze the defendants’ assets in the Wise Media case and order them to stop their wrongful practices. The FTC is also seeking a permanent injunction so the defendants would be forced to give up their money, which can be used as refunds to victims of the scam, the agency said.

“The concept of ‘cramming’ charges on to phone bills is a not a new one,” FTC Chairwoman Edith Ramirez said in an agency statement. “As more and more consumers move to mobile phones, scammers have adapted to this new technology, and the Commission will continue its efforts to protect consumers from their unlawful practices.”

The defendants billed consumers for “premium services” – such as text messages with horoscopes, flirting and love tips. Consumers never agreed to get these services, or were confused about them, and were charged $9.99 a month on their phone bills.

Brian M. Buckley and William J. Deloney were among the listed defendants in the case, the FTC said. They were identified in news reports as co-owners of the company.

The legal complaint was filed in Georgia federal court.

It is expected that other companies could be subject to such lawsuits by the FTC “in the coming months,” The Next Web reported.

The FTC is focusing on consumer protection related to mobile devices, given the great growth in the sector.

Cramming "poses a serious problem for American consumers," the FTC told the FCC last year. The FTC wants consumers to be able to block third-party charges from companies such as Wise Media, a report from Legal Times said.

Wise Media could not be reached for immediate comment on the case or allegations.