Calif. Judge Rules It Is Illegal For Sprint To Charge Early Cancellation Fees

[mandy]

Sprint Nextel sustained a harsh legal blow this week that could have wide-ranging effects across the entire mobile telephone industry. A judge in California ruled that it is illegal for Sprint to charge so-called early termination fees when customers discontinue their wireless phone service before their contracts with the carrier end. Sprint must now reimburse its customers in California $18.2 million it collected in early termination fees. It must also discontinue its efforts to collect another $54.7 million in early termination fees from Californians...

It's unclear whether Sabraw's decision will stand or be overturned by a higher court, said Charles Golvin, a wireless telecom analyst with Forrester Research...

Another possibility is that regulators such as the Federal Communications Commission, which oversees the entire telecommunications industry, will weigh in on the matter at some point,...

full article: http://ecommercetimes.com/story/Californ...64001.html