Termination fees charged by Cell Phone companies ruled illegal

[Raziaar]

In California anyways.

http://tech.yahoo.com/blogs/null/99655

In one of the most significant legal rulings in the tech industry this year, a Superior Court judge in California has ruled that the practice of charging consumers a fee for ending their cell phone contract early is illegal and violates state law.

While an appeal is inevitable, the ruling could have massive fallout throughout the industry. Without the threat of levying early termination fees, the cellular carriers lose the power that's enabled them to lock customers into contracts for multiple years at a time. And while those contracts can be heinously long, they also let the carriers offer cell phone hardware at reduced (subsidized) prices. AT&T's two-year contract is the only reason the iPhone 3G costs $199. If subsidies vanish, what happens to hardware lock-in? Could an era of expensive, but unlocked, hardware be just around the corner? It's highly probable.

I don't own a cell phone, but I've always hated the idea of early termination fees. They're entirely ridiculous and often exorbitant.

 

[DEATHMASTER]

Damn Cali.

 

[Acepilotf14]

California is now the best state.
Bow down to us.

 

[Dog--]

Canada still got you beat.

 

[VirusType2]

WTF What has Canada got on California? Shit

Are you ****ing kidding me? You should be ashamed to live in Canada.


I'm sorry, my happy Omega-3 pills are ... I maybe took too many.

 

[Druckles]

I'd quite like to terminate my contract, but Orange will ask me to pay the remaining contract left on the phone. Which is silly...

I'm downgrading a notch.

 

[VirusType2]

I might get one of those pay per phones.

No monthly fees

just add minutes if you want to use the thing


Probably burns up some minutes, but I'm not a huge conversationalist on a mobile. It's for confirming shit or whatever.

"Yeah, I'm outside in your bushes. Right now"

 

[Dog--]

^pretty much, that's the most useful unless you talk non-stop in which case, enjoy cancer! yay! so much fun!

..


Do phones even cause cancer, anyways?

 

[Raziaar]

WTF What has Canada got on California? Shit

Are you ****ing kidding me? You should be ashamed to live in Canada.


I'm sorry, my happy Omega-3 pills are ... I maybe took too many.

Omega-3 pills? How much more Omega does that have compared to other sources like fish oil and flaxseed? Super concentrate?

 

[Parrot of doom]

I'd quite like to terminate my contract, but Orange will ask me to pay the remaining contract left on the phone. Which is silly...

I'm downgrading a notch.

What's silly about it? You signed the contract, they gave you a phone and a certain service.

If you cancel your contract, they've lost money. They can't take the phone back as it will have been used and damaged. Therefore you pay.

 

[Remus]

You signed the contract.

That's the only thing I agree with. You signed a contract therefore it's you're problem if you weren't paying attention to what you were agreeing to.

 

[Druckles]

What's silly about it? You signed the contract, they gave you a phone and a certain service.

If you cancel your contract, they've lost money. They can't take the phone back as it will have been used and damaged. Therefore you pay.

The phone is not worth the entire 18 months worth of contract. They aren't losing money, because they wouldn't be serving you anymore. Let's say you cancelled your contract half way through an 18 month contract. You've payed for 9 months at something like ?30 per month. That's ?270, which can easily cover the phone twice over. The price per month is far over what you'd normally pay for the services, and they're still gaining profit from it. If they're not supplying you with those services anymore then they're getting ?270 plus interest for doing absolutely nothing.

 

[No Limit]

I'd much rather pay $100 more for a phone than sign a 24 month contract. If they made it so it's illegal for these companies to lock what phones you can use on their network it would be that much sweeter.

 

[VirusType2]

I'd much rather pay $100 more for a phone than sign a 24 month contract. If they made it so it's illegal for these companies to lock what phones you can use on their network it would be that much sweeter.

exactly

and if you switch plans/companies you keep the number and you keep your data along with your phone


Additionally, I think phones are overpriced in the first place, so they can act like they are giving you a good deal

Omega-3 pills? How much more Omega does that have compared to other sources like fish oil and flaxseed? Super concentrate?

To clarify, I double dose Omega-3 fish oil. It completely fixes up my bi-polar for a few hours

My mood will be '**** DIE, **** EVERYTHING, etc.', and after I take it, I'm in such a good mood, it's great

 

[15357]

Don't you guys ever read through contracts?

 

[VirusType2]

Don't you guys ever read through contracts?

They've got you by the balls. You either sign the contract, or you don't get a cellphone.

 

[15357]

Oh. Good point.

 

[Remus]

They've got you by the balls. You either sign the contract, or you don't get a cellphone.

Huh? I don't know how it is in the states but over here you can choose if you want a long term contract with monthly fees or the way I have my cellphone with a rechargeable card. So whenever I've depleted the card I just go and buy a recharge. I don't talk a lot on the cellphone so this system suits me just fine.

 

[TechnoHippyChic]

I get pre-paid with no contract. I just buy 1000 minutes for $100 which lasts me months. You can recharge right from the phone.

 

[Remus]

I get pre-paid with no contract. I just buy 1000 minutes for $100 which lasts me months. You can recharge right from the phone.

That's exactly what I was talking about. Only I don't buy that much. I spend 20 euros tops on one recharge.

 

[Druckles]

Huh? I don't know how it is in the states but over here you can choose if you want a long term contract with monthly fees or the way I have my cellphone with a rechargeable card. So whenever I've depleted the card I just go and buy a recharge. I don't talk a lot on the cellphone so this system suits me just fine.

Pay as you go. You can only get a selected number of "cell" (mobile) phones with that, though.

 

[VirusType2]

Huh? I don't know how it is in the states but over here you can choose if you want a long term contract with monthly fees or the way I have my cellphone with a rechargeable card. So whenever I've depleted the card I just go and buy a recharge. I don't talk a lot on the cellphone so this system suits me just fine.

First page

I might get one of those pay per phones.

No monthly fees

just add minutes if you want to use the thing

Many people need unlimited minutes, long distance, and other things that contracts allow.

 

[Remus]

Oh, OK. It's just that you made it sound like you had no choice but the long term contract.

 

[AiM]

Eh. There's unlocked phones available now. You do have to pay a higher price but that's expected. The whole 'era of high cost phones that are unlocked' has existed for a while now.

Personally I don't find phone contracts that big of a deal, I just go with the one that most of my friends are on to share free sms. But then again, I live in a place where we have arguably one of the lowest cell phone bills anywhere. I pay roughly $10 USD per month and I get something like 1200 universal minutes, 600 for same network, unlimited sms to same network, etc.