By Steve Johnson, Mercury News
Californians fed up with being charged for ending their cell phone service prematurely won a major victory in a Bay Area court decision that concluded such fees violate state law.
In a preliminary ruling Monday, Alameda County Superior Court Judge Bonnie Sabraw said Sprint Nextel must pay California mobile-phone consumers $18.2 million as part of a class-action lawsuit challenging early termination fees.
Though the decision could be appealed, it’s the first in the country to declare the fees illegal in a state and could affect other similar lawsuits, with broad implications for the nation’s fast-growing legions of cell phone users.
The judge – who is overseeing several other suits against telecommunications companies that involve similar fees – also told the company to stop trying to collect $54.7 million from other customers who haven’t yet paid the charges they were assessed. The suit said about 2 million Californians were assessed the fee.
Whether Sabraw’s ruling will stand isn’t clear. Experts say an appeal is likely, and the Federal Communications Commission is considering imposing a rule – backed by the wireless industry – which might decree that only federal authorities can regulate early termination fees.
Sprint Nextel also argued in the lawsuit that such fees – which ranged from $150 to $200 – were outside the purview of California law. But Sabraw rejected that argument.
ACLUSA editorial comment:
Let’s hope that this leads to a national trend to sweep away early termination fees and to restore some power to the consumer.
Americum
11 Aug 2008
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