Sprint just had a pretty bad day, sending its stock down 5 percent after some troubling news. The Wall Street Journalreportsan FCC official confirmed the regulatory body is preparing to fine Sprint, the nation’s third-largest mobile carrier, a record $105 million after allegations it charged consumers for unwanted text message alerts and other services.
During the FCC’s probe from August to October 2013, it received 35,000 complaints from consumers in regards to the unwanted charges that stemmed from text message alerts, horoscopes, sports scores, ring tones and other unwanted services. It has become known as carrier “cramming”.
Sprint isn’t the only mobile carrier to take part in “cramming”, as the the nation’s second-largest carrier AT&T recently settled with the FCC for $105 million in October – the same amount the FCC wants from Sprint. T-Mobile is also being sued for bogus services.
It’s not clear if Sprint is currently in settlement talks with the FCC, as neither the regulatory body nor the mobile carrier have offered a statement regarding the allegations first reported by the National Journal. If the fine is given final approval – likely, after it was for AT&T – consumers that think they’ve been overcharged by Sprint would be eligible for compensation.
Sprint’s stock was down 5.93 percent on Tuesday, following the FCC and Nascar news and a broader market selloff.
A chartreleased byBusiness Insider Intelligence on Tuesday showed how close fourth-largest mobile carrier T-Mobile is on closing in on Sprint’s marketshare.
