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Bad weather heading Sprint’s way these days, as the company
faces yet another class-action lawsuit over its early termination fee
practices. Sprint is accused of illegally charging its subscribers $1.2 in ETF
starting from 1999.
According to a court ruling in July this year, Sprint
already needs to refund $73 million to its affected subscribers, although the
decision is not final yet. This time, the same lawyer as in the previous case,
Scott Bursor, said Sprint violated the Federal Communications Act.
“After a full trial on the merits, we proved that Sprint
Nextel’s termination fees violated California law,” Bursor said in a release,
referring to the previous case, also adding that they’ve managed to prove that
the fees were in fact a way of preventing dissatisfied customers from ending
their services.
“Now,” said Bursor, “we will prove that the fees violate
federal law as well.”
Sprint’s spokesman Matthew Sullivan told WSJ that the ruling
in the July case is still preliminary. “If Mr. Bursor is basing the case on the
premise that the northern California lawsuit is final, he’s being presumptuous.”
The early termination fees have longtime been a subject of
debate for carriers, consumers and consumer advocates. While the phone
companies say ETFs are helping them recover the subsidies they pay to
phonemakers to keep prices low on the devices, consumer advocates say they are
restricting the consumers' rights to change carriers.
The Federal Communications Commission is currently
discussing the issue of Early Termination Fees, trying to find a solution to
suit both the interests of consumers, and satisfy carriers.
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