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Cell Phone Termination Fees Illegal under California Law

I haven't read the case, nor will I have time to, but I saw a headline that sparked at least enough interest to read the article. See California Judge: Sprint's Early Termination Fees Illegal. I'm sure this will make for a much more interesting read on appeal (assuming they don't reach some settlement, which is equally likely), but the gist of it is that the contracts that basically put a $150-200 termination fee if you decide to get out of your cell phone contract early violate a California unfair practices law.

I agree with the decision in principle, on the basis that the contract itself is a contract of adhesion and since all cell phone companies basically have the same language, you really have no choice to avoid it absent not buying a cell phone or cell phone service. Of course, it only triggers if you break the contract also. Setting these issues aside, I would have to read the opinion and become admitted in California to be able to speculate about their trade laws. In either case, the ruling has capability (potentially) of becoming persuasive authority in a different case in a different jurisdiction. Time will tell to what extent this will actually happen.

In the meantime, I will continue with my cell phone plan, notwithstanding the fact that it's inherently a ripoff. But then again, nobody really needs a cell phone, right?

Full post as published by The Once and Future Lawyer on July 31, 2008 (boomark / email).

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