Early cell phone termination fees illegal?

[Diogenes]

If this holds up. Which is dubious.


California judge rules early cell phone termination fees illegal

Thu Jul 31, 2008 12:48PM EDT

In one of the most significant legal rulings in the tech industry this year, a Superior Court judge in California has ruled that the practice of charging consumers a fee for ending their cell phone contract early is illegal and violates state law.

The preliminary, tentative judgment orders Sprint Nextel to pay customers $18.2 million in reimbursements and, more importantly, orders Sprint to stop trying to collect another $54.7 million from California customers (some 2 million customers total) who have canceled their contracts but refused or failed to pay the termination fee.

While an appeal is inevitable, the ruling could have massive fallout throughout the industry. Without the threat of levying early termination fees, the cellular carriers lose the power that's enabled them to lock customers into contracts for multiple years at a time. And while those contracts can be heinously long, they also let the carriers offer cell phone hardware at reduced (subsidized) prices. AT&T's two-year contract is the only reason the iPhone 3G costs $199. If subsidies vanish, what happens to hardware lock-in? Could an era of expensive, but unlocked, hardware be just around the corner? It's highly probable.

Of course, the carriers aren't going to take this lying down. Early termination fees are seen as critical to business, so carriers are expected to look for ways to reclassify the fees (such as by calling them "rates," part of the arcane set of laws that covers the telecommunications industry). The industry is also pushing for the federal government to step in and claim oversight over the early termination fee issue, which would invalidate any state ruling. The FCC is generally more tolerant of such fees, though Chairman Kevin Martin has proposed a plan whereby the fees are decreased the closer you are to the end of your contract.

The FCC may also buy the argument that, since carriers are nationally based (and consumers can use their phones anywhere in the country), that a single policy should apply across the nation, rather than creating a patchwork of legislation that could lead to confusion and chaos caused by having 50 different policies.

Is the early termination fee dead? Not yet, but it's looking a little haggard.

http://tech.yahoo.com/blogs/null/99655" onclick="window.open(this.href);return false;

[Mikey]

Professional athletes don't have to honor their contracts. Why should anybody else?

[smackaholic]

Well, yes, it is a contract, but, those poor welfare mom's who wanted an iphone were unfairly trapped by predatory uhhhh, cell phone loaner outers. It's an outrage.

We wouldn't have this problem if we just had a gubmint sponsored cell phone system.

[Diogenes]

We wouldn't have this problem if we just had a gubmint sponsored cell phone system.

It would be cheaper (and do less harm to the economy) than the mortgage bailout.

Next-government subsidized gasoline for everyone. Bring on utopia.

[Mikey]

Next-government subsidized gasoline for everyone. Bring on Venezuala.

FTFY

[Diogenes]

Shouldn't you be posting more incohearent unfunny jokes?

Oh wait, you just did.

[Mikey]

Shouldn't you be dropping a few more incohearantally spelled words that most fifth graders should know?

Oh wait. You just did.

[Diogenes]

Shouldn't you be dropping a few more incohearantally spelled words that most fifth graders should know?

Epic. Stick to the spellcheck 'smack', you suck at stand-up.

[Mikey]

Spell-check smack is quite relevant when it comes to a complete ignoramus like you, who misspells relatively simple words about every other post. The thing that makes it at least a little funnay is that you really have no idea.

[Bobby42]

Time out, ladies.

[Diogenes]

Spell-check smack is quite relevant when it comes to a complete ignoramus like you, who misspells relatively simple words about every other post. The thing that makes it at least a little funnay is that you really have no idea.

What makes you ridiculous is the fact that I don't give a flying fuck.

Now if I decide to run spellcheck smack, that's funny.

And you're still an idiot.

[Shlomart Ben Yisrael]

So many tards...so little time...

:twisted:

[Mikey]

Very effective use of the quote function.

A-

[Shlomart Ben Yisrael]

Very effective use of the quote function.

A-

Thank you. I graduated with honours from the Dinsdale Polytechnic Institute.

[Mister Bushice]

Not yet. You're about 12,500 posts credits shy.

7 years of DPI - down the drain.

[Shlomart Ben Yisrael]

Not yet. You're about 12,500 posts credits shy.

7 years of DPI - down the drain.

NEVER BESMIRCH THE NAME OF THE GREAT DPI!

Oh, DPI, forever to thee we hail
Our DPI, at grammar smack we never fail

Gimme a "D"
Gimme a "P"
Gimme an "I"
What does that spell?

Besides, I got a free ride on a basketball scholarship.

[Shlomart Ben Yisrael]

7 years of DPI - down the drain.

Also, my Bachelor of Ponderous Didactics diploma hanging on the wall proves your* wrong.

Martyred B.P.D.

* (see? it did pay off)

[BSmack]

Besides, I got a free ride on a basketball scholarship.

And here I thought Steve Nash was the only Canadian who could play basketball.

[Shlomart Ben Yisrael]

Besides, I got a free ride on a basketball scholarship.

And here I thought Steve Nash was the only Canadian who could play basketball.

I can dunk on very short people.

[MgoBlue-LightSpecial]

I'm all set through the year 2046.

-RtS

[BSmack]

I can dunk on very short people.

(l-r) TVO - Marty

[TVO]

BSlack, you are a gibbering fucktard with feathers.

And the rest of you ass clowns, you Will pay the fees, unless you got the cash to be a test case.


Why do you hate the legal system?

[Goober McTuber]

Why do you hate the legal system?

Because the vast majority of its participants are vile, ethically-challenged fucktards?