Facts

The Federal Trade Commission brought a complaint under the FTC Act against mobile phone and data plan provider Sprint Corporation for civil penalties, permanent injunction, and other equitable relief.

COMPLAINANT'S CONTENTIONS:
The FTC contended that Sprint failed to give consumers proper notice that they had been placed in a program for customers with lower credit scores and charged an extra monthly fee of $7.99 in addition to charges for cell phone and data services.

Result

Pursuant to the settlement reached between the parties, Sprint will pay $2.95 million in civil penalties. It must also provide required notices to consumers within five days of signing up for Sprint service or by a date that gives them the opportunity to avoid the recurring charges.

Other Information

FILING DATE: Oct. 21, 2015.