Subject: [NEXTEL-1] C L A S S A C T I O N R E P O R T E R - CELLULAR PHONES: Carriers Sued For Violating Consumer Fraud Laws

From: [email-masked]
Date: Thu, 23 Oct 2003 07:56:04 -0400

C L A S S   A C T I O N   R E P O R T E R

 Thursday, October 23, 2003

CELLULAR PHONES: Carriers Sued For Violating Consumer Fraud Laws

A consumer watchdog group has sued two cell phone carriers, namely: Nextel
Communications Inc., and Cingular Wireless, over allegations that the companies
took advantage of unwary customers and violated state consumer protection laws, AP
Newswire reports.

The Foundation for Taxpayer and Consumer Rights filed a lawsuit in Superior Court
on Tuesday against Nextel Communications Inc., claiming that the company stopped
issuing itemized bills on Oct.  1, making it difficult for consumers to challenge
charges. It further alleged that Nextel sent four text messages to all California
customers on September 12, charging them 15 cents for each message.  Without an
itemized bill, consumers may not even notice the extra charges, the foundation
said.

"They're nickeling and diming consumers out of what could amount to hundreds of
thousands of dollars in overcharges and they're making it impossible for people to
discover they've been ripped off," foundation president Harvey Rosenfield said
Tuesday.

The foundation asked the court to issue an injunction against Nextel and is
seeking to reimburse customers who have overcharged.  A Nextel spokesman did not
return a call seeking comment Tuesday, AP reports.
In another lawsuit, this time against Cingular Wireless, the Foundation charges
the company with conducting an advertising push for new customers, then providing
inadequate service to them.  The charges echo similar ones levied against Cingular
in September by the California Public Utilities Commission.
The commission fined Cingular $12.1 million after concluding the carrier didn't
give new subscribers a chance to change their minds during an aggressive expansion
that resulted in shoddy service.

Cingular said at the time they would appeal the fine. On Tuesday, the company
called the latest charges "baseless," AP reports.  "The organization's allegations
about our business practices, network and customer service quality are not true,
and, in fact, just mirror unproven claims alleged in the California Public
Utilities Commission's investigation of Cingular," the company said in a
statement.

The FTCR complaint against Nextel was filed on October 21, 2003 in the Superior
Court of the County of Los Angeles in California.  Plaintiffs in this action are
represented by attorney Harvey Rosenfeld.  The lawsuit titled Foundation for
Taxpayer and Consumer Rights vs. Pacific Bell, case number BC303355 was filed on
October 1, 2003 in the Superior Court of the County of Los Angeles in California.
Plaintiffs in this action are represented by Pamela M. Pressley, and defendants
are Bellsouth Corporation, Cingular Wireless, Pacific Bell Wireless LLC and SBC
Communications Inc.

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