Mobile ‘Crammers’ Settle With FTC in Non-Monetary Deal

Four individuals are prohibited from engaging in unfair mobile billing practices, the FTC announced in non-monetary settlements with the defendants Wednesday. The agency linked Darcy Wedd, Fraser Thompson, Erdolo Eromo, Michael Pajaczkowski and MMJX Consulting to a mobile “cramming scheme” led by MDK Media. Consumers paid more than $100 million in bogus charges related to the scheme. The FTC in 2015 reached settlements with six other defendants and affiliated companies. The violators engaged in deceptive practices, including fake websites and phony offers designed to trick consumers into sharing their mobile numbers, the FTC said. The defendants then “placed monthly subscription fees for a variety of ‘services’ on consumers’ mobile phone bills without their authorization," the FTC said. Some consumers were billed for unauthorized services for months and didn’t receive full refunds. The defendants are “prohibited from placing any charges on any telephone bills, from making any misrepresentations about any product or service, and from engaging in any unfair billing practices,” the FTC said. Attorneys for the defendants didn’t comment.