FTC urges stronger safeguards for mobile transactions


The release of the report also signaled the increased efforts of the agency to investigate a practice known as “mobile cramming,” where an unauthorized third-party can place charges on mobile phone bills.

ADVERTISEMENT
A company can sometimes add charges to a customer’s phone bill that show up as “web hosting,” or an “international call,” which makes them hard to spot, the federal regulator warned.

The FTC said it would hold a roundtable on May 8 in Washington to discuss the mobile cramming issue.

“The roundtable will bring together consumer advocates, industry representatives, and government regulators to explore various issues, including how mobile cramming occurs and how to protect consumers from this practice,” according to the agency.