Mobile content provider Media Breakaway has entered into a settlement of a class action lawsuit, agreeing to give wireless customers refunds for claimed unauthorized mobile content charges.

Media Breakaway provides mobile content under the business name Ringaza. The settlement has received preliminary approval by the U.S. District Court in Miami last week.

"The settlement is a positive result for consumers, who are eligible to participate and get a cash settlement," said Myles McGuire, attorney at KamberEdelson, Miami. "Media Breakaway has stepped up to the plate and has agreed to put provisions in place to prevent this from happening in the future."

Media Breakaway provides mobile content and markets third-party mobile content that consumers buy to use with their mobile phones.

Mobile content refers to products such as ringtones, games, graphics, news and other alerts that are provided through mobile phones and are charged directly to consumers' mobile phone bills.

Apparently Alltel played a role in this as well, since it provides access and billing for various third-party mobile content services.

As part of their contract, Alltel subscribers are promised "duty of good faith and dealing," meaning that the carrier will not bill any customer for good or services they did not authorize.

Unbeknownst to its customer, Alltel was allegedly charging consumers for services that were not authorized.

Florida Attorney General Bill McCollum's office reached a $1.5 million settlement with Verizon Wireless and its Alltel subsidiary over third-party charges for mobile content.

As part of the settlement, Verizon Wireless will adopt best-practice standards meant to protect consumers from third-party charges for mobile content that customers either did not order or did not realize would result in a monthly charge.

As part of that, separate settlement, Verizon Wireless will pay $1.5 million in retribution. Alltel will pay $500,000 (see story).

Apparently, there has been an increasing number of complaints within the mobile content industry.

"We have a few other similar cases pending," Mr. McGuire said. "My advice for content providers is to make sure to openly obtain enforceable and valid consent at arm's length by fully informing consumers regarding charges.

"Consumers need to understand they are being charged as many don't associated third party charges with mobile content," he said.