ETF Fees rules illegal in California
From Yahoo news:
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 f...
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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 f...
(continues)
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I don't think the ETF is ever going to die, but I'd like to see people have the option of paying retail cost for a phone and getting service without a contract. It's really kind of ridiculous that a person can bring in their own phone to start service and have to sign a contract of any length.
At the same time, when people realize how expensive phones are, they won't be willing to pay the full price for the phones. Once people figure out what that ETF is there for (subsidized phones), then they'll be more than happy to sign a contract. That doesn't include everyone, and I think both options should be available.
I don't think ETF fees should be illegal, but they shouldn't be the only option either.
At the same time, when people realize how expensive phones are, they won't be willing to pay the full price for the phones. Once people figure out what that ETF is there for (subsidized phones), then they'll be more than happy to sign a contract. That doesn't include everyone, and I think both options should be available.
I don't think ETF fees should be illegal, but they shouldn't be the only option either.
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It seems to be heading that way already. T-Mobile is doing no contract postpaid on August 6th. (no not flexpay)
Seems pretty gutsy though, especially with the high churn rate they've been working to cut down.
Seems pretty gutsy though, especially with the high churn rate they've been working to cut down.
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Not contracts for post paid? Meaning if you buy the phone at retail price? Because I know they do that one. Please elaborate I feel dumb.
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they currenty do that with Flexpay, which is a little different. With that you pay for your plan before you use it and it has a different system.
so they have prepaid, flexpay, and postpaid; where postpaid is the best.
so they have prepaid, flexpay, and postpaid; where postpaid is the best.
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also you have to be qualified to have a 1yr or 2yr post paid contract to be eligable for the no contract post paid.
flexpay is for people with little or no credit. So people with good credit who dont a contract have a choice as well, considering postpaid is much better than flexpay
flexpay is for people with little or no credit. So people with good credit who dont a contract have a choice as well, considering postpaid is much better than flexpay
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I was under contract when my phone broke, So I bought the 6267 and I absolutely love it. It was expensive, but worth it, and you can buy a warranty for around $25 to cover you for 3 years.
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I think that anybody who would argue that ETF are/should be illegal is ridiculous. The basis of almost any contract is the fact that if one of the parties does not live up to an agreement that there are penalties to pay. If you don't want a contract there are options for you. But for someone to say they are illegal makes no sense. There are many industries that without a contract and a penalty for breaking it there would be chaos. Why should it be different from a labor/employment contract. All the carriers should charge full retail for devices to anybody living in California.
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