Dive Brief:
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The Federal Trade Commission Monday released “Mobile Cramming: An FTC Staff Report,” with steps it recommends companies take to prevent unauthorized charges on consumers’ mobile bills.
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The guidelines urge more clarity, discourage deceptive practices, and promote ways to make it easier for mobile users to dispute and block charges.
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The FTC released the guidelines because it expects more problems with mobile cramming — the practice of saddling users with unauthorized charges — as the use of mobile payments increases, according to FTC’s Bureau of Consumer Protection director Jessica Rich.
Dive Insight:
With this report, the Federal Trade Commission is maintaining its proactive stance against mobile cramming and anticipating that a coming surge in mobile payments could exacerbate the problem. Retailers, mobile wallets, and anyone affected by the slow-but-steady rise in mobile payments and m-commerce in general should heed this report.