Swanson sues Sprint, alleging deceptive practices
"MN Attorney General"09/28/2007
Minnesota attorney general says the cell phone firm extended customer contracts without their consent.
By Brian Bakst | Associated Press | September 27, 2007
In a lawsuit filed Thursday, Minnesota Attorney General Lori Swanson accused cell phone giant Sprint Nextel Corp. of extending customer contracts without the informed consent of those customers.
Swanson said she is acting on hundreds of complaints from Minnesota residents, including some who said they were threatened with $200 cancellation fees for trying to get out of contracts they thought expired.
"The company has used hidden trip wires to trap unwary consumers into lengthy contracts simply because they made small changes in their plan," she said.
She said Sprint, whose operational headquarters are in Overland Park, Kan., violated state consumer protection laws that require adequate disclosure and knowing consent to alter contract terms.
She said her lawsuit isn't coordinated with legal actions in other states.
According to the lawsuit and affidavits, some customers who accepted a "courtesy discount" were unwittingly agreeing to stay with the company longer. Others had contracts extended when they added more minutes to their plans even though some people said they received verbal assurances it wouldn't affect the contract length.
In addition to barring certain practices, Swanson is seeking restitution for victims and civil penalties of up to $25,000 per incident.
Sprint spokesman John Taylor said that company attorneys were reviewing the lawsuit and that he could not comment on the specific claims.
"It is Sprint Nextel's policy to go over the contract with the customer so they understand all aspects of it" before it is agreed to "or before the customer initiated changes are made to their account," he said. Taylor said Sprint sends written confirmation of all account updates and has opt-out windows if new customers change their minds.
Swanson announced her lawsuit, filed in Hennepin County District Court, at a State Capitol news conference in St. Paul.
On hand was certified financial planner David Peterson of Andover. He said he was able to reverse the changes made to his contract without his approval only after he and his wife spent hours dealing with the company.
"They've treated us extremely poorly," Peterson said. "I'd like to give their CEO a big swift boot in the patootie."