A Cook County, IL, court granted preliminary approval to a settlement agreement that seeks to end to more than 30 class action lawsuits involving claims of unauthorized charges for mobile content on consumer wireless bills.

The settlement provides wireless customers across the country with a cash refund for unauthorized mobile content charges. It also requires that the defendants ? mBlox, 2WayTraffic USA, DadaMobile, Lavalife, Mobile Entertainment, Playphone, SendMe, SJA Mobile, Sony Pictures Entertainment, UPOC Networks and W3i Mobile remain in compliance with the consumer best practice guidelines established by industry trade groups.

?This class action is just one in a series of challenges brought by consumers and regulators alleging that companies failed to adequately disclose the costs associated with mobile content,? said Gonzalo Mon, an attorney in the advertising law group of law firm Kelley, Drye & Warren LLP, New York. 

?The key lesson here is that marketers need to clearly and conspicuously disclose the material terms ? including costs ? of their offers to consumers before they subscribe,? he said. ?If marketers don?t do this, consumers are likely to complain, and those complaints can quickly lead to lawsuits or regulatory investigations. 

?Given that most settlements involving mobile marketing practices include payments upwards of $1 million, companies should make certain that they satisfy the applicable legal standards.?

All of the defendants have denied any wrongful conduct and the court has not found the defendants culpable for any wrongdoing. Instead, defendants agreed to the settlement in order to avoid the expenses and uncertainties associated with going to trial.

Mobile content refers to products such as ringtones and games that generally are received via text messages on mobile phones and are charged directly to customers? mobile phone bills.

Chicago attorneys Jay Edelson, Myles McGuire, Ryan D. Andrews and Steven Lezell, all of KamberEdelson, acted as lead counsel on behalf of the plaintiffs and class.

The settlement will provide up to $63 million to pay the claims of qualifying class members.  However, that amount may be lowered to $36 million if a similar settlement with AT&T Wireless is approved prior to the court?s final approval of this case. 

Class members may receive $10 or a refund for up to three months of charges associated with the mobile content at issue.

?Although it can sometimes be difficult to determine what is necessary in order to meet the legal standard for a clear and conspicuous disclosure, a settlement between Verizon Wireless and the Florida Attorney General that was announced earlier this year provides marketers with some helpful guidance,? Mr. Mon said.

?As part of that settlement, Verizon agreed to include some very specific requirements in all of its contracts with third-party providers about how disclosures must be made,? he said. ?For example, there are requirements regarding the font size, color contrast, and location of disclosures. 

?Marketers would be well-advised look at the terms of the Verizon settlement for guidance when they are preparing ads or offers.?