SAN ANTONIO, Texas (Legal Newsline) – The Federal Trade
Commission (FTC) announced a proposed $5.2 million settlement agreement with
Billing Services Group (BSG) that resolves allegations the company placed
crammed charges on consumers’ phone bills.
The new proposed settlement stems from FTC contempt charges
against BSG. The FTC alleged that BSG violated a 1999 settlement order with the
agency that barred them from unauthorized billing.
BSG operated as a phone billing aggregator. It would pass
charges from third parties to telephone companies for placement on consumers’
telephone bills. Under the new settlement, BSG admits to violating the 1999
order by permitting unauthorized billing.
In addition to the monetary fines, BSG has been mandated to
stop placing charges on consumer’s phone bills for enhanced services and placing
unauthorized charges on any type of consumer bill.