Ex-Customers Sue Qwest Over Cancellation Fees

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Two former customers of Qwest Communications International Inc. have filed a lawsuit against the telecommunications provider, seeking to end early-termination fees for Internet subscribers. The suit, filed in the US District Court in Seattle, is one of the first challenges to the practice of early-termination fees as it applies to broadband services. Early-termination fees have come under scrutiny by consumer groups and lawmakers, who say they lock in customers and discourage competition. Providers say they must hold customers to long-term agreements in exchange for offering aggressively priced service plans. Qwest's termination fees are part of its "price for life" plans, which cost $30 or more a month for broadband. In recent months, customers have fought similar charges for early termination of cellphone contracts with wireless carriers including AT&T, Verizon Wireless, Sprint Nextel, T-Mobile USA and Alltel. In July, a California judge ruled that Sprint must refund about $73 million in early-termination fees, and Verizon Wireless, a joint venture of Verizon Communications Inc. and Vodafone Group PLC, settled a set of early-termination lawsuits for $21 million. According to the Qwest complaint, Robin Vernon of Auburn (WA) and Rory Durkin of Anoka (MN) were each charged $200 when they canceled their high-speed Internet service.


Ex-Customers Sue Qwest Over Cancellation Fees