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California judge says Sprint must pay $73M in ETF case

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A California judge has ruled that Sprint Nextel must pay $73 million in refunds to its former customers in a lawsuit over early termination fees.  However, a Sprint spokesman says that the ruling is tentative and the company has two weeks to come up with a response to this decision. 

Consumer advocates are calling this preliminary decision a victory and saying that early termination fees unfairly restrict consumers from switching service. Wireless operators, meanwhile, say that ETFs are necessary because they subsidize a portion of the cost of the device and need to recoup those expenses.

This court decision comes at a time when the FCC is considering a nationwide ETF policy for carriers. Verizon has advocated that the commission adopt rules that are similar to what the operator has in place. For example, carriers should offer opt-out or trial periods for new contracts; provide pro-rated ETFs; and offer no ETFs for contract renewals unless the consumer gets a new device as part of the deal.

Verizon recently settled a similar suit for $21 million. The carrier didn't admit to any wrongdoing but said that $21 million, which is the maximum amount it was liable for, will be doled out to plaintiffs and will cover attorney's fees. 

For more:
- read this story

Related articles:
Verizon settles ETF suit for $21M
Verizon to FCC: nationwide ETF policy is best
FCC provides some insight into ETF rules

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Comments (2) | Post a comment
More stories about Verizon Wireless   Sprint   FCC   Termination Fees  

Comments

so show me my money!!!! ASAP!
What if this happened and my contract w/ Sprint was up Jan of 07' ?? I should have received some notice of some sort in the mail.. but I never did.
Just a bill from a collection agency about 2 weeks ago stating a due balance of 158.00 (from Sprint) in which I've responded to stating it is incorrect, and that if anything is owed it is Sprint owes Me!! The consumer, and if they can't pay then they will be facing a huge lawsuit over this.. Come to find out it's already happened?
carrie_6648@yahoo.com

Cant wait if this goes through and you try to get out of your contracts early and get hit with a Breach of Contract suit.

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