The office Florida Attorney General Bill McCollum announced that his office obtained
a $1 million settlement with a Hong Kong-based company that creates and
distributes content for cell phones. Building on earlier agreements with
advertising networks and a major wireless carrier, the agreement with
MobileFunster, Inc., which does business as FunMobile, is the first CyberFraud
agreement the Attorney General's Office has negotiated with a mobile content
provider and addresses another link in a business model that includes wireless
carriers, billing aggregators, advertising networks, and content providers like
FunMobile.
"As the first content provider to adopt advertising standards created
by this office, FunMobile has clearly stated its intent to lead mobile content
providers in setting new marketing standards that will benefit
consumers and cell phone users nationwide," said Attorney General
McCollum.
The large number of CyberFraud complaints prompted the Attorney General to
transition his CyberFraud Task Force to a permanent CyberFraud section within
his Economic Crimes Division. These complaints also led to a widespread
investigation which revealed thousands of cell phone consumers had received
charges on their cell phone bills for third party services or content they did
not authorize. FunMobile provides mobile content, usually ringtones or
wallpaper for an individual's cell phone, which was marketed by way of internet
advertising that often failed to clearly and conspicuously describe the price
and terms of service for the content. Often, the content, which is usually
advertised as "free," results in customers unwittingly being signed
up for costly monthly subscriptions.
The agreement with FunMobile requires that the price of cell phone content
or services and other material terms of purchase be conspicuously disclosed on
all online ordering screens. The new standard will ensure that consumers will
see and comprehend the terms and conditions of the purchase offered them.
In addition to the new injunctive standard, the agreement also provides for
a payment of $1 million to the Attorney General to be used to fund additional
investigations into CyberFraud and to further CyberSafety education. The
Attorney General encouraged any
consumers who believe they have been victimized by unauthorized charges for
mobile content to contact their wireless cell phone carrier for refunds
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