Sprint loses early termination lawsuit, ordered to pay $73M -- but it's not over yet

Man, Sprint just can't catch a break lately -- the beleaguered wireless carrier was just told that it would have to pay some $73M in refunds to customers for improperly charging early-termination fees. The ruling, from a California state court, will basically set off a flood of similar cases if it stands -- but Sprint still has two weeks to respond to the ruling before Judge Bonnie Sabraw, and you can bet Yellow Swoosh will appeal if it loses in the end. Interestingly, Verizon was facing a similar lawsuit earlier this year and chose to quickly settle -- a lesson Sprint, with far less revenue and shrinking profits, might do well to learn from.

[Thanks, Roger A]

[zephxiii @ Jul 29th 2008 2:21PM]

"...early-termination feeds." :-)

[Ignatius @ Jul 29th 2008 2:35PM]

Improperly spelling fees, of course.

[OneLove @ Jul 29th 2008 2:59PM]

"feeds" is correct. Its their bread and butter screw you tactic.

[dabrown @ Jul 29th 2008 2:26PM]

What's a "termination feeds?"

[oGMo @ Jul 29th 2008 2:32PM]

Pinks slips via RSS?

[Allen Jazeera @ Jul 29th 2008 2:27PM]

"Early-termination feed"
Are they giving aborted fetuses to chickens now?

I think I'm ok with genetically-modified feed after all ...

[qrius @ Jul 29th 2008 2:35PM]

dang, and all this time I didn't know the radio signals being fed through my phone was Sprint's attempt at killing me early!

[JOSE @ Jul 29th 2008 2:36PM]

chicken feed?

[phanbouy @ Jul 29th 2008 2:39PM]

haha! EAT it, telcos.

[Dbs143 @ Jul 29th 2008 2:42PM]

wow, that's a cool sprint logo sign. is that at headquarters, or just a photoshop?

[Toby @ Jul 29th 2008 2:49PM]

The Sprint sign you are looking at is located in the Sprint Center in downtown Kansas City, Mo. It's the new arena that opened in the last year. Sprint has the naming rights and has branded the hell out of it.

[boe @ Jul 29th 2008 9:36PM]

If you like the sign, you'll be able to purchase it on ebay next year when they have their big going out of business clearance sale.

Too bad they killed off the good SERO plan pricing - that was bout the only redeeming point of Sprint.

[Josh @ Jul 30th 2008 11:56AM]

Only $73M? bah, that's nothing to them - they announced losses for $30b! those 73 don't even get reported as a loss.

And according to this article http://www.internetevolution.com/author.asp?section_id=617&doc_id=153313&f_src=flffour the odds are against them for the Xohm/Sprint/ClearWire WiMax consortium.

[JamesR @ Jul 29th 2008 2:45PM]

Nilay has edit and you do not. Guess who's going to get the last laugh?

@Engadget:
Also, when you put in "edit" can you also add an "ignore" button? It would be awesome to be able to filter out all the mindless "First!" posters.

/Rant.

[OneLove @ Jul 29th 2008 3:01PM]

I just pressed the [ignore] button.

[random @ Jul 29th 2008 2:48PM]

those ETF's are really 'early-termination feeds' because they apparently are being used to feed the profit margin...... The whole 'fee' and 'feed' thing are synonimous....

[Sebastian @ Jul 29th 2008 2:57PM]

I just had my T-Mobile experience with that the story is, I do have my phone, I don't want a phone from T-Mobile. I don't mind a contract and I don't want the hassle of pay-as-you go.

So I asked for a contract without a phone which they were happy to offer (only 2 years contracts nothing else). So I asked "what if I decide to leave you guys after say 1 year?" Answer: "You have to pay 200 bucks." Why? To pay for the subsidized phone (remember I have a phone I don't want one!). So that was a no go for me...

Next thing is "Flex Pay" supposedly with all the advantages of a contract but without being locked in (their advertisement). Turns out: Not so much: Firstly you have to pay all kinds of extra fees while signing up. Secondly some features like international roaming are NOT available on these "contracts" even if you put down a credit card / have enough money in your T-Mobile account.

So I really am looking forward to have these ETFs killed.

[Tony @ Jul 29th 2008 3:32PM]

You know, there are one-year contracts.

[Kris @ Jul 29th 2008 3:37PM]

You're an idiot. Why on EARTH would you sign a contract without getting a phone? T-Mobile, Sprint, Verizon, etc all have month-to-month plans.

If you get a phone else where and you _still_ sign up for a contract... well, you deserve to have your money taken from you.

[Hungry @ Jul 29th 2008 3:03PM]

I think Nilay is hungry

[barry99705 @ Jul 29th 2008 3:06PM]

Fuck those assholes. My wife got a palm centro from these douches three days before att got them. She took it back so we could all be on the same family plan with att. Every thing was all hunky dory, until the store manager asked why she was returning the stuff, there was a case and memory card there too, so she told him. So he returns her money for the phone and cancels the contract, then hands back all the other stuff. She says she want's to return them too, and he says, nope, she's no longer a sprint customer and he doesn't have to give her the money back. Screw them I hope they go under.

[rock99rock @ Jul 29th 2008 3:17PM]

BBB Barry, BBB.

[Kris @ Jul 29th 2008 3:39PM]

Nice. That's illegal and incorrect. You DO NOT have to be a Sprint customer to buy / return accessories.

Why didn't you stand up for her? That should have been an easy put-him-in-his-place situation.

[7on @ Jul 29th 2008 3:48PM]

Can't she use the case and card on her AT&T Centro?

[Brian @ Jul 29th 2008 5:22PM]

The reason you experienced this problem is most likely because you were not at a Sprint store. You were probably at one of their "authorized dealers." These stores at NOT Sprint and do NOT behave the same way.

[barry99705 @ Jul 30th 2008 12:20AM]

No they were at a sprint store. I wasn't with her, which is probably why I can write this from my home, and not a terminal at the jail's library.... I called in a complaint, beats me if they actually followed up on it. Yea, she could have used the case with the new phone, but it had this big assed sprint logo on it. The card is in the new phone though. Case went into the trash, it was only $20.

[StuckInTexas @ Jul 29th 2008 3:41PM]

I got caught up in the same mess with Sprint. I called them 2 months before my contract was up (planned on going with T-Mobile), and asked them to verify when my contract was up and then to put a note in my account detailing the conversation. I then called 2 days before the switch and they had told me that 2 months prior I had signed up for another 2 years....on the same date that I called the first time getting confirmation of the end of contract.

So I asked, "Why would I sign up for 2 more years, not change my plan and not get a new phone?". They agreed and changed the contract end date to the original contract date.

Guess what I got the month after leaving? An early termination charge. After another hour on the phone I finally got the fee waived. Sprint gets what it deserves.

[Peter @ Aug 6th 2008 5:17AM]

100% agreed. It's sad for the folks who are working there since they're not the ones at fault (well, other than the losers working in customer service). Management has known for many years that these issues with billing are there, so now it can only be seen as intentional, so it's hard to feel bad for the company doing so badly as a resul of everyone bailing on them.

[Karen @ Jul 29th 2008 4:37PM]

I had this problem when my contract was up. I went to a cprint keosk to verify my contract was up on THAT day. It was, the guy cancelled my contract, and I went and signed up with Verizon and got my LG EnV and I was happy. About a month later I received a bill in the mail from Sprint for $150. I called, and they told me it was the charges for my early termination and for the basic costs of my phone for that month. After 45 minutes of going back and forth with the guy, he said the lowest he could bring the bill down to was $45. I figured it was better than $150, so I paid it. This was last March, so I hope I can get in on this. Sprint is terrible to try to negotiate charges with. I really hope they learn from this and try being a bit nicer to their customers.

[181 @ Jul 29th 2008 5:41PM]

All wireless carrier execs should be publicly tarred and feathered along with the rest of those greedy bastards.

[nudidn't @ Jul 29th 2008 5:51PM]

I hear your Sprint problems, but Verizon is playing games too. When Sprint offered the $99 everything plan. I called Verizon to find out when my contract was up and how much if I cancelled now. The Verizon rep said it would be $179 and I said that was wrong and that Verizon was now pro-rating the contract. He got all huffy, told me I was wrong and I told him to check with his superior. He put me on hold and came back a short time later, still with the huffiness in his voice and very annoyed and said that I was right and the cost at this time would be $85.

He then told me that the early termination fee would never be below $65 even if I terminated one day before my contract ended. So I ended my contract for the $85, I went to Sprint , got the $99 everything plan plus a new Windows Mobile 6 phone and I have been very happy with the service. The money I have saved with the Sprint plan that was costing me almost $149 a month with Verizon, was well worth the $85 termination fee! I still can't believe that rep tried to charge me $179 to terminate. What an idot!

[mrcrlee @ Jul 29th 2008 7:07PM]

I currently have Sprint and have decided to wait until my contract ends, 10/10/2008, to make the move to AT&T for an iPhone. I called Sprint to find out if they have begun pro-rating their ETFs, seeing as they said so last November (http://www.engadgetmobile.com/2007/11/08/yahtzee-sprint-announces-prorated-etfs-all-four-us-nationals-n/).

Unfortunately they still haven't acted on their promise (which I assume was made in hopes it would keep them from losing this lawsuit). However, the cancellation agent said that if I cancel within 30 days before my contract end date, I would not be charged the ETF.

Has anyone been told something similar?

[Sandeep @ Jul 29th 2008 8:40PM]

My understanding was that the new prorating only applied to new contracts. Existing contracts are locked down on the old terms and conditions.

The upshot? By the time the prorating is useful, Sprint will probably be bankrupt

[Jon @ Jul 29th 2008 7:14PM]

Hey that photo is in the sprint center in Kansas City

[boe @ Jul 29th 2008 9:39PM]

If you like the sign, you'll be able to purchase it on ebay next year
when they have their big going out of business clearance sale.

Too bad they killed off the good SERO plan pricing - that was bout
the only redeeming point of Sprint.

[Mike C @ Jul 29th 2008 11:42PM]

I cancled with Sprint in January of this year when they changed some fees around, breaching their side of the contract. So I had a 1 month window to get out of my contract, and I was tired of Sprints over seas CS and my phone was not working to well anymore either. I had to argue with CS about it, and he threatened me saying that if I didn't cancel right now, I would be accepting the new terms and would not be able to get out ETF free. Now when I first called up, I was not dead set on leaving them yet, I was simply looking at my options. So with his attitude, I canceled my line with Sprint ETF free and moved to Tmobile.

Guess what showed up a month later? A ETF bill for over $200, I call them and they apologize for the mistake and note it on my account. I got two more bills before they finally fixed it.

I think their CS is terrible, and lead to their downfall. And then they removed some taxes that they could no longer pass onto the customer, and added two new fee's that amounted to a greater amount then the taxes they replaced for most customers. This change allowed several customers to drop Sprint without having to pay the ETF, I think this hit them hard.

[Andy @ Jul 30th 2008 12:12PM]

Anyone know if it's too late to sign up to be a part of the lawsuit? I had to pay a cancelation fee when I moved to CA and I didn't have service in my new place. The CS rep had the balls to tell me I should just keep it and use my phone on my balcony.

[cheercht @ Aug 5th 2008 10:29PM]

I Have Been With Sprint For 8 Yrs And They Have Been Extremely Good To Me Every Year I get Special Promotions Gift Added To My Account I Dont Think You All Have Been With Them Long Enough So Dont Give up

[Kris @ Aug 11th 2008 1:19PM]

Why The Fuck Are You Typing With Alternating Caps? That's Fucking Annoying! kNOCK iT oFF!

[pryan2 @ Aug 11th 2008 7:37PM]

How does this affect current sprint customers looking to get out of their contract? Can I cancel plan without having to pay the ETF?