Consumers v Cingular Wireless
Judge Approves Another Class Action Against Cingular Wireless
The Illinois Supreme Court recently ruled that a lawsuit filed against Cingular Wireless can proceed as a class action.
The lawsuit against Cingular claims that a $150 cancellation fee charged to consumers when they change carriers is an improper penalty. The lawsuit claims consumers were unaware of the fee.
The company argued that customers' contracts require them to take their claims, individually, to arbitration.
The 5th District Appellate Court ruled recently that arbitration is required, but the arbitration can be done on behalf of an entire class of customers. The Supreme Court upheld that ruling.
"We think it's clear that Cingular and other cell phone carriers put fine print language in their service agreement that attempts to take away consumer rights given by the legislature," said an attorney handling the case. "The legislature has the class action mechanism for a reason -- to allow consumers to band together in cases affecting many but where the money, like the $150 here, is a small amount. Fortunately, the Illinois Supreme Court did not allow Cingular to circumvent the legislature."
Attorneys' for the plaintiffs claim that thousands of cellular customers are affected by the ruling.
