Third-Party Service Fees Sneaking Onto Wireless Bills

"Most people have no idea that their cellphone provider can even act as a billing service for another company," says Bob Sullivan, author of "Gotcha Capitalism." What's worse: No credit card is needed. The only thing these so-called "premium content" providers need is your cellphone number to start billing. It also doesn't help that third-party charges are typically listed as vague "direct bill charges," "downloadable content" or "premium messages" on your wireless bill with no company name or specifics. "It's not like your bill says '$20 for ringtones,'" gripes Sullivan.

One common practice that catches consumers unaware is when a single purchase of, say, a ringtone or game, (unknowingly) triggers a monthly subscription or other additional charges, says Kent German, a senior editor at electronics review site CNET.com. The Florida Attorney General's office filed a lawsuit in November against Buongiorno, a European digital mobile entertainment company, alleging that users who followed online ads for free ringtones were later socked with a $9.99 monthly subscription. (The suit is ongoing; Buongiorno has said it plans to defend its practices.)

Wireless service providers are also being taken to task. In early March, AT&T Mobility (formerly Cingular Wireless) settled out of court with the Florida Attorney General's CyberFraud Task Force, agreeing to reimburse thousands of its Florida customers who were billed by third-party companies for ringtones, games and other services that were advertised as free. The restitution is expected to surpass $10 million, says an AT&T spokesman.

Here's how to avoid getting sucked into third-party charges, and what to do should an unauthorized charge show up on your bill: