California judge rules early cell phone termination fees illegal

[Poltergeist]

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.

Full Story

Interesting if it gets up held. Just hope the phone companies don't come up with some other BS fees to replace the cancellation fees.

 

[NukleusX]

:exactly:

 

[mmangels22]

honestly who knows.

 

[MMLMM]

I always thought this too. Stupid fee. I think it should be like a rental lease, your liable for the monthly rate until your contract expires, not $300 if you cancel with 2 months left.

I also think the cell companies dont do much for there customers anyway and people still buy them, they should not even have a contract, all the contract does is prevent competition form taking business by better deals. F**Kin scammers!

Yes I have 2 cell phones