Cellphone Firms Accused Of Billing for Unwanted Ads

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Cellphone Firms Accused Of Billing for Unwanted Ads

By SARMAD ALI
Staff Reporter of THE WALL STREET JOURNAL
July 21, 2005; Page D5

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The Utility Consumers' Action Network, based in San Diego, told the state's Public Utilities Commission it had received complaints from consumers who said they had been billed by the companies for unwanted text messages, ringtones and advertisements. The group said it is trying to get regulators to stop the practice.

Sprint is charging its customers for text messages sent by Sprint touting its services, said Michael Shames, executive director of the consumer group. When customers complained about charges for Sprint's advertising, the company refused to put those customers on a "do-not-spam" list, he said. Instead, he said, the customers were only given the option to disable their phone from receiving any text messages. Sprint officials said they had not seen a copy of the complaint and couldn't comment on the allegations. "However, it is our practice not to charge our subscribers for informational text messages we may send them," said Jennifer Walsh, a Sprint spokeswoman. "In addition, Sprint provides convenient methods for customers to opt-out of receiving any further text messages from Sprint."

Cingular has been violating current state law both by refusing to remove charges for unwanted text messages and ringtones sent by other companies and by not investigating the problem, Mr. Shames said.

Cingular, jointly owned by SBC Communications and BellSouth Corp., also said they hadn't yet seen the complaints, but added that they usually provide customers with safeguards to help them understand downloads before they agree to buy them from third-party providers. Cingular requires third-party providers to get at least two positive responses from customers before selling ringtones, graphics, games or any other content. Cingular said that those providers must also make pricing clear to customers as well as how to unsubscribe.

"Our goal is no surprises," said Mark Siegel, a Cingular spokesman.

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