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Swanson alleges deceptive practices by Sprint Nextel
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In a lawsuit filed today, Minnesota Attorney General Lori Swanson accused cell phone giant Sprint Nextel Corp. of extending customer contracts without the informed consent of those customers.
Swanson said she's acting on hundreds of complaints from Minnesota residents, including some who said they were threatened with $200 cancellation fees for trying to get out of contracts they thought had already expired.
"The company has used hidden trip wires to trap unwary consumers into lengthy contracts simply because they made small changes in their plan,'' Swanson said.
She said Sprint, based in Reston, Va., with operational headquarters in Overland Park, Kan., violated state consumer protection laws that require adequate disclosure and knowing consent to alter contract terms. Aside from barring certain practices, Swanson is seeking restitution for victims and civil penalties of up to $25,000 per incident.
Sprint spokesman John Taylor said company attorneys were reviewing the lawsuit and could not comment on the specific claims.
"It is Sprint Nextel's policy to go over the contract with the customer so they understand all aspects of it'' before it is agreed to "or before the customer initiated changes are made to their account,'' he said.
Swanson announced her lawsuit, filed in Hennepin County District Court, at a state Capitol news conference. She was surrounded by people who felt duped by the company.
Among them was certified financial planner David Peterson of Andover. He said he received a letter in July thanking him for extending his contract on four phones. When he called to question the action, he said he learned from a customer service agent that his contract was lengthened for apparently inquiring about a plan discount something he denies took place.
Peterson said he was able to reverse the charges, but only after he and his wife spent hours dealing with the company.
"I was livid on the way they've handled this. They've treated us extremely poorly,'' Peterson said. "I'd like to give their CEO a big swift boot in the patootie.''
Swanson said she is investigating consumer complaints leveled against other phone companies. She said she decided to sue Sprint first because they were cited most often by angry callers to her office.
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