Enforcing new standards in the mobile content industry
This week, the CyberFraud Section of my Economic Crimes Division reached a $1 million settlement with a major marketer of mobile content, which includes ringtones, cell phone wallpaper, games and other downloads for cell phones.
Over the past year, my office has received a large number of complaints about the mobile content industry. My CyberFraud Section opened a widespread investigation which revealed thousands of cell phone consumers had received charges on their cell phone bills for third party services they did not authorize. Often, these charges were for ringtones which were advertised as “free,” but resulted in customers unwittingly being signed up for costly monthly subscriptions.
Every time mobile content is purchased, the person making that purchase deserves to know what he or she is getting and will ultimately end up paying. Our efforts in this area have led to the development of new standards which require companies to clearly and conspicuously disclose the true cost of ringtones and other content in all online advertising. These compliance standards are leading the nation in reigning in the mobile content industry and holding all parties accountable.

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