Cramming is illegal but there are two reasons why enforcement is lax: First, as the article points out (and attempts, by inference, to get the carriers to convict themselves of), the billing carrier earns a cut, usually in the 20-30% range. Second, the individual amounts are usually quite small so it's not "worth" anyone's time to actually investigate unless that person is the subscriber who got dinged.

Simply shutting off third-party billing would kill off all kinds of pretty revenue streams that U.S. mobile and wireline carriers just love, such as purchasing apps from the Android and Windows Phone marketplaces without a credit card and "accidentally" (or intentionally, since they are somewhat popular) signing up for premium services via SMS.

I guess the easy targets are the phone companies themselves for facilitating/enabling the fraud. They should probably be the ones getting sued.

You can separate legitimate payments from fraud.

It's not even hard. But surely they, earning a cut, don't even want that.

I agree completely. In Sweden "everybody" knows the practice of negative option marketing (or billing) is illegal, and it surprises me after a few minutes of googling that that doesn't seem to be the case in most of US and Canada.

believe its true in canada as well..... automatically signing anyone up for something they didnt agree to is generally outright fraud............