Module Six: Review the article FTC Providing Over $88 Million in Refunds to AT&T Customers Who Were Subjected to Mobile Cramming. Conduct research of other companies or consumers who experienced unethical and illegal mobile marketing activities. Using examples from the case and other research, address the following questions in your blog assignment:

What specific mobile marketing law was violated in the AT&T case?

The tactic involved in the AT&T violation is what is known as mobile cramming. This tactic adds third-party charges to the bills of customers without receiving prior consent.

What are the negative consequences to the consumer?

The negative consequences to the consumer are that they are charged for items they didn’t consent to purchase.

What are the possible penalties levied on a company for violating legal considerations?

The penalties levied can be quite steep. In the case of AT&T, the company was required to pay over $88 million in refunds for the violation. According to a press release on the ftc’s website, the company T-mobile settled a lawsuit in 2014 by having to pay at least $90 million. Another example is that violating email spam laws can be up to a $50,120 penalty per email!

What kind of actions must a marketer take with any mobile marketing campaign to remain ethical (e.g., asking for permission or prohibiting the practice of spamming)?

A marketer must receive prior consent from the consumer. It is important that mobile consumers aren’t charged for anything they don’t authorize. Clearly identifying communications as marketing or advertisements when necessary is also important. Receiving opt-in consent prior to sending communications, as well as, providing a clear path to opt-out with the ability to honor those requests within 10 business days. Staying on top of current regulations will help with ensuring that marketing efforts are within legal (and ethical) guidelines. Being sure to remain transparent and honest, along with following legal requirements, will help to protect the marketer and increase the consumers’ confidence in the brand.