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Minnesota sues Sprint Nextel in dispute over customer contracts
Updated:2007/9/29 10:11
Minnesota Attorney General Lori Swanson has filed a lawsuit against Sprint Nextel Corp., accusing the cell phone company of extending customer contracts without consent.
The suit alleges that Reston-based Sprint Nextel violated Minnesota''s consumer protection laws by extending consumers'' wireless-phone contracts for up to two years without giving adequate disclosure. In a press release, Swanson''s office said it was responding to complaints the state had received. When customers made small changes -- like adding extra minutes, replacing a phone, responding to solicitations for additional services or receiving courtesy discounts -- they were given unwanted contract extensions. Some consumers were threatened with early termination fees of up to $200 when they tried to cancel the wireless service. "In a normal transaction, you have two parties coming together and making an agreement about a purchase," Swanson said in a statement. "For these consumers, there was no real meeting of the minds. Rather, the company has tricked consumers into unknowingly extending their contract simply because they made a basic change to their plan." Swanson is seeking restitution for victims and civil penalties of up to $25,000 per incident. A Sprint spokesman could not be reached for comment. Source: biz.yahoo ,Sprint: We'll Beat AT&T to 3G Femto (2009-7-1) ,Clearwire Launches WiMAX in Vegas; Sprint Doesn't (2009-6-12) ,Sprint breaks its sales record with Palm Pre (2009-6-9) ,Sprint: How Soon Is '4G Now'? (2009-6-8) ,Sprint to sell Palm Pre for $200 after rebate (2009-5-20) ,Sprint Teams with Cisco, IBM, Microsoft on UC (2009-5-12) ,Sprint Nextel Posts 1Q 2009 Results (2009-5-12) ,Despite prepaid lift, Sprint Nextel loss widens (2009-5-5) ,Sprint may outsource network to Ericsson (2009-5-4) |
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