California rules cellphone termination fees illegal - GoFuckYourself.com

SmokeyTheBear · 07-31-2008, 06:42 PM

http://tech.yahoo.com/blogs/null/99655

wow thats gonna fuck up some plans

----------------------------
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.

LiveDose · 07-31-2008, 07:09 PM

Interesting read.

Alky · 07-31-2008, 07:17 PM

This could really hurt sprint if the appeal fails...

d-null · 07-31-2008, 07:23 PM

it's a scummy way of doing business they have been doing anyways, to lock in customers with long contracts instead of just providing the kind of service that keeps loyalty

ideal would be hardware sold everywhere and the freedom to sim for whatever company the consumer wishes to

Barefootsies · 07-31-2008, 07:27 PM

Sweet justice.

baddog · 07-31-2008, 07:27 PM

sprint sux anyway

tony286 · 07-31-2008, 07:29 PM

maybe now cell phones will be at real prices if people just buy them out right.

GetSCORECash · 07-31-2008, 07:47 PM

No way this is going to stand. You are even going to see consumers defending these companies, inorder to get their Iphones for $199...

Just thought of a new business plan. Cell Phone Leases.... What do you think?

Iron Fist · 07-31-2008, 08:02 PM

Awesome.. so that must take the teeth out of cell phone contracts....

d-null · 07-31-2008, 08:02 PM

I think if it was wide open, phones would be even cheaper than they are at these "subsidized" rates

let any phone work on any network, sell them at Fry's and Best Buy, betcha prices will be cheap

Iron Fist · 07-31-2008, 08:29 PM

"TERMINATION fees are TERMINATED..."

tony286 · 07-31-2008, 08:30 PM

Quote:

Originally Posted by jetjet

I think if it was wide open, phones would be even cheaper than they are at these "subsidized" rates

let any phone work on any network, sell them at Fry's and Best Buy, betcha prices will be cheap

No doubt

bigalownz · 08-01-2008, 06:34 AM

I hope they make it ilegal here too

IllTestYourGirls · 08-01-2008, 06:43 AM

So could someone use this ruling to break their apartment/studio/house leases early without out any penalties? I dont see how it is any different.

raven1083 · 08-01-2008, 06:44 AM

Thanks for that information. I'm sure it will be great!

stephane76 · 08-01-2008, 06:44 AM

Bout time they do something against those crooks
I have to go thru the BBB to cancel my old sprint contract last Year

spanky part 2 · 08-01-2008, 07:01 AM

Quote:

Originally Posted by sharphead

"TERMINATION fees are TERMINATED..."

by the state with the Terminator for Gov.

07-31-2008, 06:42 PM	#1
SmokeyTheBear ►SouthOfHeaven Join Date: Jun 2004 Location: PlanetEarth MyBoardRank: GerbilMaster My-Penis-Size: extralarge MyWeapon: Computer Posts: 28,609	California rules cellphone termination fees illegal http://tech.yahoo.com/blogs/null/99655 wow thats gonna fuck up some plans ---------------------------- 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. __________________ hatisblack at yahoo.com

07-31-2008, 07:09 PM	#2
LiveDose Show Yer Tits! Industry Role: Join Date: Feb 2002 Location: Somewhere Out there... Posts: 25,792	Interesting read. __________________ Scammer Alert: acer19 acer [email protected] [email protected] Money stolen using PayPal

07-31-2008, 07:23 PM	#4
d-null . . . Industry Role: Join Date: Apr 2007 Location: NY Posts: 13,724	it's a scummy way of doing business they have been doing anyways, to lock in customers with long contracts instead of just providing the kind of service that keeps loyalty ideal would be hardware sold everywhere and the freedom to sim for whatever company the consumer wishes to __________________ __________________ Looking for a custom TUBE SCRIPT that supports massive traffic, load balancing, billing support, and h264 encoding? Hit up Konrad! Looking for designs for your websites or custom tubesite design? Hit up Zuzana Designs Check out the #1 WordPress SEO Plugin: CyberSEO Suite

07-31-2008, 07:27 PM	#5
Barefootsies Choice is an Illusion Industry Role: Join Date: Feb 2005 Location: Land of Obama Posts: 42,635	Sweet justice. __________________ Should You Email Your Members? Link1 \| Link2 \| Link3 Enough Said. "Would you rather live like a king for a year or like a prince forever?"

07-31-2008, 07:47 PM	#8
GetSCORECash Confirmed User Industry Role: Join Date: Mar 2008 Location: Miami Posts: 5,527	No way this is going to stand. You are even going to see consumers defending these companies, inorder to get their Iphones for $199... Just thought of a new business plan. Cell Phone Leases.... What do you think? __________________ \| skype: getscorecash \| ICQ: 59-271-063 \| New Sites: \| SCORELAND2 \| Roku Channel SCORETV.TV \| 60PLUSMILFS \| \| Big Tit Hooker \| Tits And Tugs \| Big Boobs POV \| Karla James \| \| Naughty Foot Jobs \| Linsey's World \| Busty Arianna Sinn \| Get SCORE Cash \|

07-31-2008, 07:17 PM	#3
Alky Confirmed User Join Date: Apr 2002 Location: Houston Posts: 5,651	This could really hurt sprint if the appeal fails...

07-31-2008, 07:27 PM	#6
baddog So Fucking Banned Industry Role: Join Date: Apr 2001 Location: the beach, SoCal Posts: 107,089	sprint sux anyway

07-31-2008, 07:29 PM	#7
tony286 lurker Industry Role: Join Date: Aug 2002 Location: atlanta Posts: 57,021	maybe now cell phones will be at real prices if people just buy them out right.

07-31-2008, 08:02 PM	#9
Iron Fist Too lazy to set a custom title Join Date: Dec 2006 Posts: 23,400	Awesome.. so that must take the teeth out of cell phone contracts.... __________________ i like waffles

07-31-2008, 08:29 PM	#11
Iron Fist Too lazy to set a custom title Join Date: Dec 2006 Posts: 23,400	"TERMINATION fees are TERMINATED..." __________________ i like waffles

08-01-2008, 06:34 AM	#13
bigalownz Confirmed User Industry Role: Join Date: Aug 2005 Location: NEW ZEALAND Posts: 1,657	I hope they make it ilegal here too __________________ $100 free credit for all hosting needs

08-01-2008, 06:43 AM	#14
IllTestYourGirls Ah My Balls Industry Role: Join Date: Feb 2007 Location: Under the gold leaf ICQ 388-454-421 Posts: 14,311	So could someone use this ruling to break their apartment/studio/house leases early without out any penalties? I dont see how it is any different. __________________

08-01-2008, 06:44 AM	#15
raven1083 Confirmed User Join Date: Jul 2007 Posts: 7,687	Thanks for that information. I'm sure it will be great! __________________ Femdom Stories \| Bound BBW Blog and Videos \|Bondage Sex Videos and Pictures Hardcore Japanese Bondage \| BDSM Movies And Galleries Mistress Cuckold CBT

08-01-2008, 06:44 AM	#16
stephane76 Best VOD Company Industry Role: Join Date: Aug 2004 Location: NC Posts: 3,888	Bout time they do something against those crooks I have to go thru the BBB to cancel my old sprint contract last Year