Sprint Early Termination Fees are Unlawful

Sprint Nextel was dealt a major blow in its early-termination-fee case when a California judge ruled it would have to pay $ 73 million. The decision could bode poorly for the various trials that are taking place throughout the country, as well as the Federal Communications Commission's attempts to make wireless carriers exempt from these state court cases. This ruling sounds the death knell for the industry's petition seeking a preemption ruling from the FCC - a ruling the industry has never been able to win in court," said Scott Bursor, an attorney representing the plaintiffs. Early termination fees are incurred when a customer breaks their wireless contract before it ends, and is an issue debated in state courts and with the FCC. Consumer advocacy groups argue that it unfairly restricts consumers from switching service. Carriers argue that the fees are a necessary because they subsidize a part of the cellphone and need to recoup those expenses. But most carriers have already changed their early termination fees to be more flexible.