Money Minute: FTC Accuses T-Mobile of Bogus Billing
T-Mobile duped subscribers for hundreds of millions of dollars in bogus fees, according to the Federal Trade Commission.
If you're a T-Mobile subscriber you may want to take a closer look at your past bills to see if there were any unusual charges. The FTC accuses the mobile carrier of knowingly allowing third parties to text their customers without their consent. The information texted tended to be things like celebrity gossip, flirting tips and horoscope information. Customers were typically charged $9.99 a month but the FTC says T-Mobile US (TMUS) made it hard for customers to detect the charges. T-Mobile allegedly got 30 to 40 percent of the third party fees. The FTC's goal is for customers to get refunded for any unwarranted fees so again check your billing statements.
The popular dating app Tinder has just been slapped with a sexual harassment and discrimination lawsuit by a former executive. Whitney Wolfe who helped found the company alleges the company's chief executive and chief marketing officer subjected her to a barrage of sexist and inappropriate comments. She also claims her status as co-founder was stripped away from her because of her gender. The company says it is conducting an internal investigation and has found inappropriate messages sent from the chief marketing officer to Wolfe.
Here on Wall Street on Tuesday, the Dow and the S&P 500 hit new records. The Dow Jones industrial average (^DJI) gained 129 points, the Nasdaq composite (^IXIC) picked up 50 and the Standard & Poor's 500 index (^GPSC) was up by 13 points.
Google (GOOG) is making a deeper push into the music streaming business. The company has just bought streaming radio service Songza for an undisclosed sum. Songza creates free playlists for listeners based on the activities they will be doing and the time of day. For now Songza will remain as is but down the road it will become a part of Google's subscription streaming music service Play Music All Access. Google's move follows Apple (AAPL) recent acquisition of Beats Electronics, which also has a streaming service.
And finally, JPMorgan Chase's (JPM) CEO Jamie Dimon has just revealed he has curable throat cancer and will begin treatment shortly. He is expected to undergo treatment for about eight weeks but plans on being a part of the daily operations of the bank during that time. Dimon has been both chief executive and chairman of the board at the banking giant for eight years.
Editor's note: The Money Minute and After Market reports will be on hiatus Thursday and Friday for the Fourth of July holiday. They will resume Monday.
-Produced by Karina Huber.