T-Mobile Early Cancellation Class Action

[Barry]

T-Mobile USA has been handed a class action suit over the No. 4 mobile phone operator’s early termination fee policy.

The suit, filed in an Idaho federal court, said T-Mobile USA’s practice of charging subscribers $200 for cancelling service before the end of their contract violates as many as 13 state consumer protections laws because no allowance is given for how long the consumer has been with the mobile phone carrier or for the quality of service they receive.

The suit involves more than 100 people, and asks for damages of more than $5 million. Want in?

CTIA, the cell phone operator trade association, has pressed the FCC to pre-empt state oversight of ETFs, arguing such fees are components of wireless rates. A 1993 law prohibits states from regulating mobile phone rates. The association also lobbied for federal legislation to repeal that statute’s clause reversing to states jurisdiction over “other terms and conditions” of wireless service. However, telecom reform legislation, which includes expanded federal pre-emption for the wireless industry, is likely dead for the year due to Congress’ schedule.

The FCC has yet to act on the cellular industry’s ETF petition. Having been overturned by a federal appeals court on its 2005 wireless pre-emption billing, the agency could find it legally difficult to make ETFs off limits to states.

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