Business ProfileforCellzum

The following describes a pending government action that has been formally brought by a government agency but has not yet been resolved. We are providing a summary of the government's allegations, which have not yet been proven.

On July 11, 2013 the Texas Attorney General's Office filed suit against Cellzum, Cell Assist 123, Harvey Berg, Hunter Lipton, and related businesses.

According to the complaint, the business engaged in "mobile cramming" to add unauthorized charges to customers' bills. State investigators found that Cellzum gained access to thousands of toll-free telephone numbers - many of which are similar to legitimate businesses' toll-free numbers for functions like customer service. The business left misleading interactive recorded messages on these telephone numbers that instructed cellphone customers who often misdialed a legitimate phone number to push a button in order to receive a text message for more information. Cellzum treated this action as authorization by the customers to be billed for premium short messaging services.

The State contends the defendants have violated the Texas Deceptive Trade Practices Act by failing to clearly disclose the cost and the recurring subscription nature of the premium short messaging services. The State is seeking an injunction and civil penalties as well as restitution for affected customers.